PPL Corp acquired E.ON U.S. LLC (Louisville Gas and Electric Company and Kentucky Utilities Company) for Approximately $7.625 billion total purchase price at announcement (effective purchase price ~$7.175 billion after ~$450 million present-value tax benefits); ~$7.59 billion at close, including the assumption of approximately $764 million of indebtedness, a transaction completed in November 2010, structured as all cash (funded by equity, equity units, and debt).
E.ON U.S. LLC (Louisville Gas and Electric Company and Kentucky Utilities Company) operates in Regulated electric and gas utilities (Kentucky), is based in Louisville, Kentucky, USA (serving ~1.2 million customers principally in Kentucky). E.ON U.S. LLC was the parent company of Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU), Kentucky's two major regulated utilities serving approximately 1.2 million customers principally in Kentucky. On closing, E.ON U.S. was renamed LG&E and KU Energy LLC (Kentucky Holdings). PPL acquired the business from a wholly owned subsidiary of E.ON AG.
PPL described the deal as a transformational, value-rich transaction that immediately improved its business mix by adding high-performing regulated utility operations to its existing regulated businesses and competitive generation fleet, adding scale and creating a more geographically diverse, lower-risk enterprise with additional opportunities for regulated-business growth.
High-performing regulated electric and gas utilities that increased PPL's regulated business by roughly 130 percent and diversified the company geographically while preserving upside from its competitive generation fleet. Held under LG&E and KU Energy LLC (Kentucky Holdings); LG&E and KU continued as PPL's Kentucky regulated utilities
This is a transformational, value-rich transaction, which will immediately improve PPL's business mix by adding high-performing regulated utility operations to our already strong combination of excellent regulated businesses and our high-value competitive generation fleet. We are adding scale, creating a much stronger and more diversified enterprise while providing additional opportunities for regulated-business growth and, importantly, retaining the upside benefits of our competitive fleet when wholesale power market prices improve.James H. Miller, Chairman, President and CEO, PPL Corporation
With this acquisition of high-performing assets, we've added significant scale and enhanced our ability to be successful over the long term. This acquisition increases the size of our regulated business by 130 percent and, importantly, retains the upside from our competitive generation business during periods of increased wholesale electricity prices and demand.James H. Miller, Chairman, President and CEO, PPL Corporation (at close)
Advisory firms were not disclosed for this transaction.