MERGER: Wisconsin Energy Corp. buying Integrys Energy Group for $9.1 billion
MILWAUKEE (AP) — Wisconsin Energy Corp. is buying Integrys Energy Group Inc. for about $9.1 billion in cash and stock to form a more diverse Midwest electric and natural gas delivery company. The merger creates a combined company with more than 9,000 employees. The combined company becomes the eighth-largest natural gas distribution company in the United States.
The deal was announced Monday, June 23rd.
The combined company will be called WEC Energy Group Inc. and will serve more than 4.3 million total gas and electric customers across Wisconsin, Illinois, Michigan and Minnesota.
"What this will mean is a fairly balanced portfolio for WEC Energy Group when the companies are combined. It gives us a little more diversity -- and will be a new Fortune 500 company headquartered in the state," We Energies VP Rick White said.
White says the company will be in a stronger position, in a consolidating industry.
"We're combining two companies that have great traditions of customer service, great traditions of reliability, really great cultures that are similar to one another, and making a larger company which should be beneficial to our customers," White said.
WEC Energy Group's headquarters will remain in Milwaukee.
"WEC Energy group will be headquartered. We will have operational headquarters in Chicago and Milwaukee and in Green Bay, so this is a good thing for us and a good thing for the area, but our metro headquarters will be here in Milwaukee," White said.
Under the deal, Integrys stockholders will receive 1.128 Wisconsin Energy shares and $18.58 in cash for each share they own.
Total consideration is valued at $71.47 per Integrys share, a 17 percent premium to the company's Friday closing stock price of $60.95.
The companies put the transaction's total value at $9.1 billion including the assumption of some debt.
Governor Scott Walker released the following statement after the announcement that Wisconsin Energy Corp. will buy Integrys Energy Group Inc.:
"Today's announcement is good news for two great Wisconsin companies. This purchase will strengthen Wisconsin Energy overall and result in better service for their local ratepayers."
White says We Energies customers won't see much of a difference on their bills or in their service.
"We're not planning to merge any of those utilities, so the same level of customer service personnel that are on the spot now, the same line-in personnel, they'll still be providing that same great customer service, so there will be very little if any change at all," White said.
Both companies' boards approved the deal, which is targeted to close in the summer of 2015.
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Wisconsin Energy Corp.'s principal business is providing electric and natural gas service to customers in areas of Wisconsin and the Upper Peninsula of Michigan.
The company's total assets are around $13 billion.
Subsidiaries of Wisconsin Energy include: We Energies, the trade name of Wisconsin Electric Power Company and Wisconsin Gas LLC utilities, W.E. Power, LLC, which designs, builds and owns power plants, and WISPARK, LLC, which develops and invests in real estate.
CLICK HERE to view a timeline of Wisconsin Energy's key company milestones -- beginning in 1896.
CLICK HERE to view a map showing We Energies' service area.
CLICK HERE for much more information on Wisconsin Energy Corporation -- including current WEC common stock prices.
CLICK HERE to learn more about the operating subsidiaries and their service areas.
CLICK HERE to learn much more about Integrys -- and to watch a video showcasing the company's history.