Essential Completes Transformational $4.275 Billion Acquisition of Peoples
Company also closes previously announced financing from CPP Investments
The acquisition received regulatory approval from the
In connection with the completion of Essential’s acquisition of Peoples, Essential also closed the previously announced
“Today marks the beginning of an exciting new chapter in our combined companies' histories,” said Essential Chairman and CEO
As part of the regulatory approval for the Peoples transaction, Essential committed to
Essential has committed to no job loss at its utilities as a result of the combination. Its officials are already in discussion to add employees both internally and through contractors as gas main replacement is accelerated in the
“We will proudly commit the necessary capital to increase the pace of gas main replacement which will ultimately result in continued safety and reliability for our customers. The accelerated gas main replacement program will also improve the environment as we reduce methane emissions from old pipes that may be leaking. This work will be achieved following the highest safety standards and utilizing union labor. Our increased need for employees and contractors to complete this work will bring even more jobs to the region. This work represents significant value potential for our shareholders and creates meaningful opportunities for career growth for the more than 3,000 industry professionals in our organization,” said Franklin.
Essential’s debt is rated by both Moody’s and Standard and Poor’s. S&P recently released its issuer credit rating for the combined company at A. “We are pleased with the credit outcome for the combined company. The transaction brings enhanced earnings for shareholders, as well as a continued strong balance sheet. Truly a win-win for customers and shareholders,” said
Essential and its utilities will continue to be engaged corporate citizens. The combined company will remain active on issues related to Environmental, Social and Governance matters. At a recent investor day, Essential announced that its water and wastewater businesses would comply with the Paris Agreement 10 years earlier than the targeted 2032 by purchasing 60 percent of its power from renewable sources beginning in 2022. The Peoples main replacement program will significantly reduce methane leakage, and the combined company will annually quantify its improved methane emissions in the sustainability report that will be posted on the Essential website.
More information is available at www.essential.co.
Essential is one of the largest publicly traded water, wastewater and natural gas providers in the
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions.
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