This morning's report that Puget Energy would be acquired by an international investment group surprised me. The Seattle Times story suggests that, at least initially, there wouldn't be substantial changes.
The company would remain headquartered in Bellevue and current management will be retained, the statement said. It will continue to honor its existing collective bargaining agreements with three union locals.
And this sounds good.
In addition to buying Puget Energy's existing public shares, the investment consortium said it will infuse another $300 million in new capital to fund the company's ongoing construction program and operational.
The Seattle Post-Intelligencer has more.
The consortium believes the utility is strong and stable with "a growing customer base in a market that has displayed consistent demand over time," said Christopher Leslie, chief executive of Macquarie Infrastructure Partners.
"Those characteristics, along with the strong existing PSE management team, are appealing to the Consortium's investors, most of whom are U.S. and Canadian pension funds and institutions," he said in a statement.
"We are firmly committed to providing PSE with the capital necessary to maintain and improve its existing delivery infrastructure and to further explore and develop more energy efficient programs and new sources of renewable power."
After the merger is complete, the company will be privately held and its stock will not be publicly traded. It is traded on the New York Stock Exchange. Shares were up 16 percent to $27.80 in midday trading.
Here's a bit about the acquiring group.
This may be a good deal for everyone. Still, there's something unsettling about the acquisition of iconic Washington businesses.
