CenterPoint Energy and Vectren Corp. announced the completion of their merger on Friday.
Under the terms of the merger announced back in April of 2018, Vectren shareholders will receive $72, along with a prorated dividend of $0.411145, in cash for each share of Vectren common stock owned as of close of business Friday.
Vectren common stock has stopped trading on the NYSE as of Friday.
“I look forward to watching the newly combined company thrive in this evolving industry,” said Carl Chapman, outgoing Vectren chairman, president and chief executive officer. “CenterPoint Energy was the right partner for Vectren and I am confident this merger will have a positive impact on all stakeholders. I sincerely thank the employees and shareholders who have been part of the Vectren journey.”
The company is named CenterPoint Energy now and headquartered in Houston.
“Today, we come together as one company. With a greater level of business operations, resources and capabilities, we plan to execute a unified business strategy focused on the safe and reliable delivery of electricity, natural gas and energy-related services,” said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. “It is a time of transformation for our industry, and I believe CenterPoint Energy will be well positioned to deliver traditional energy services with innovative solutions that meet customers’ evolving needs and expectations.”
With the merger, CenterPoint Energy has assets totaling approximately $29 billion, an enterprise value of $27 billion, and approximately 14,000 employees.
CenterPoint Energy said in a press release Friday that its business includes the following:
- Electric utility business – CenterPoint Energy maintains the wires, poles and electric infrastructure serving 2.4 million metered customers in the greater Houston area and 145,000 customers in Indiana. The company also owns and operates nearly 1,300 megawatts of power generation capacity in Indiana. CenterPoint Energy’s Texas electric utility business is headquartered in Houston and its Indiana electric utility business is headquartered in Evansville, Ind.
- Natural gas utility business – CenterPoint Energy sells and delivers natural gas to 4.5 million homes and businesses in eight states: Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas, including the high-growth areas of Houston and Minneapolis. The company’s natural gas utility business is headquartered in Evansville.
- Competitive energy businesses – CenterPoint Energy’s competitive energy businesses include: natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company’s competitive energy businesses are led from Houston.
Employees at Vectren contacted Eyewitness News Friday, saying some employees are being laid off.
The Evansville Courier & Press reports final approval needed for the merger between Vectren and Houston-based CenterPoint Energy was made this week, with the deal expected to close very soon.
According to employees at Vectren, cabs are being called for people using company cars since they can’t drive the vehicles home.
Announced in April, the merger between Vectren and CenterPoint Energy will result in Vectren becoming CenterPoint Energy.
The headquarters for the company will be in Houston, but the natural gas utilities operation and Indiana election operation will still be based in Evansville.
An integration team determined personnel needs for the combined company, but there is no word on how many people may lose their jobs.
When the announcement was made, the Courier & Press posted information presented to employees that said non-bargaining employees will receive base pay and benefit premiums for two years.
As part of the deal, current Vectren CEO Carl Chapman will not remain with the new company.