Investor group to acquire Cleco
Cleco, which supplies electrical power to much of St. Landry Parish including Opelousas and Eunice, has been sold.
The Pineville-based company announced Monday it has entered into an agreement to be acquired by a North American investor group led by Macquarie Infrastructure, Real Assets and British Columbia Investment Management Corporation together with John Hancock Financial and other infrastructure investors.
Public Information Officer Robbyn Cooper with Cleco said the purchase should have no effect on the company’s thousands of customers.
“It should be seamless. The way customers contact us will be the same, the people they work with be the same and our rates will not be impacted,” Cooper said.
“The big difference is we will no longer be traded on the stock exchange,” Cooper said. “And people need to understand that our customers will not pay for any of the costs associated with this transaction.”
The agreement values Cleco at about $4.7 billion, including approximately $1.3 billion of assumed debt.
Under the terms of the agreement, the new owners will acquire all outstanding shares of Cleco Corporation for $55.37 per share in cash.
The transaction is subject to the approval of Cleco shareholders, the approval of the Louisiana Public Service Commission and the Federal Energy Regulatory Commission. The transaction is expected to close in the second half of 2015.
Following the close of the transaction, Cleco Power LLC will continue to be regulated by the LPSC and FERC.
According to the press release announcing the sale, Cleco will continue to operate as an independent company led by local management and will maintain its headquarters in Pineville.
Cleco’s chief executive officer, senior utility management and leaders of corporate support functions will all be Louisiana residents, as will at least four members of Cleco’s board of directors, including its chair.
The press release said the new owners have made additional commitments to the LPSC, including that no changes will be made to Cleco’s operations, staffing levels, compensation levels or employee and retiree benefits programs.
“Our customers and employees can expect us to retain our strong commitment to service and reliability,” said Bruce Williamson, Cleco’s chairman, president and chief executive officer. “The board and management worked together in structuring this transaction to ensure a continued local presence in the communities Cleco serves.”
“A well-run utility like Cleco, operating in an environment in which our experience and expertise can help drive additional growth, represents a very good opportunity for our investors,” said Chris Leslie, chief executive officer of Macquarie Infrastructure Partners III, the MIRA-managed fund leading the acquisition.
“Our ownership group has significant experience with large utilities in the United States and around the world. We value having quality local management and we support these independent businesses in their efforts to grow and prosper over the long-term,” Leslie said.
“Cleco has proudly served residents and businesses in Louisiana for nearly 80 years, and our commitment to them is as strong as ever,” said Darren Olagues, currently president of Cleco’s utility operating company who is expected to replace Williamson as Cleco’s president and CEO upon closing.
“Cleco will continue to operate as an independent, locally based company with a clear focus on preserving our strong culture. Our customers will continue to receive the reliable power and responsive service they have come to expect from us,” Olagues said.
Cleco Power owns 11 generating units with a total nameplate capacity of 3,340 megawatts. Cleco Power serves approximately 284,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana and Mississippi.