AES plans to acquire Ohio utility in $4.7 billion deal
- April 21, 2011
Arlington-based AES Corp. plans to acquire DPL Inc., the Ohio-based parent company of the Dayton Power & Light Co., in a $4.7 billion deal.
“We are concentrating our growth efforts in a few key markets, including the U.S. utility sector, where we see opportunities to leverage our global platform of 40,500 megawatts and 11.5 million utility customers,” Paul Hanrahan, the president and CEO of AES, said in a statement.
AES has agreed to pay $30 per share in cash to DPL shareholders. AES will pay $3.5 billion in cash for the equity and assume $1.2 billion in net debt for a total transaction value of $4.7 billion. Bank of America Merrill Lynch will provide bridge financing. Permanent financing will include non-recourse debt, the re-issuance of corporate debt that had been paid down temporarily last year and cash on hand.
Through its subsidiaries Dayton Power & Light and DPL Energy Resources, DPL serves more than 500,000 customers in West Central Ohio. The company operates over 3,800 megawatts of power generation facilities.
Upon closing of the transaction, DPL will become a wholly-owned subsidiary of AES.