Local utility company Avista announced today that it will become a subsidiary of Hydro One, a Toronto-based electricity transmission and distribution utility, as part of a $5.3 billion, all-cash sale.
In an email to customers, Avista assured people that the company's headquarters will remain in Spokane, and they will continue to receive the same service under the same name they already do. As part of the deal, no layoffs will be made.
The company, which was founded in 1889 as Washington Water Power, will be "overseen by a Board of Directors with significant Pacific Northwest representation," Avista says in the email to customers, and "Scott Morris, our current board chair, president and CEO, will serve as chairman of the board."
Here are a few of the points Avista made about the merger:
- Avista’s customers will continue to be provided with high quality and reliable energy services at a reasonable cost. Further, Avista and Hydro One share longstanding commitments to environmental stewardship and safety.
- The communities Avista serves will continue to benefit from the important philanthropic and economic development support we provide. In fact, Hydro One has committed to doing even more – nearly doubling our current levels of community contributions and providing a $2 million annual contribution to the Avista Foundation.
- Avista employees will see a continuation of the company essentially as it is today.
- And the transaction delivers solid value to our shareholders, who will receive an attractive price of $53 for each of their shares.
Avista shares closed at $43.33 on Wednesday.
"With Hydro One as our partner, we will continue to uphold our longstanding commitment to environmental responsibility, innovation, safety and reliability," Avista says in the note to customers. "Hydro One will provide Avista with additional scale, helping us build a stronger foundation for our future and augmenting the resources available to us to continue to invest in our energy infrastructure and technology."
Find more here.
Avista is being sold to Hydro One