By Editors of Power Engineering
Ontario power distribution company Hydro One announced its intent to purchase Avista Corp. for $5.3 billion.
The company said the acquisition will help Hydro One and Avista become a stronger and growing utility leader that will become more efficient and cost-effective.
"This marks a proud moment for Canadian champions as we grow our business into a North American leader," said Mayo Schmidt, president and CEO of Hydro One. "This transaction demonstrates the power and value of the transition into an investor-owned utility, by allowing for healthy expansion into new lines of regulated utility business and new jurisdictions, such as the U.S. Pacific Northwest which is experiencing customer and economic growth."
Hydro One is paying $53 per share for Avista, which will continue to operate as a stand-alone utility.
The combined entity will serve over two million retail and industrial customers and hold assets in states in areas of North America concentrated in Ontario, Washington, Oregon, Idaho, Montana and Alaska.
The sale, approved by the boards of directors of both companies, is expected to close in the second half of 2018, subject to Avista shareholder and government approval.