Germany-based E.ON to sell U.S. utility assets to PPL for US7.6 billion

E.ON U.S., a diversified energy services company that owns and operates Louisville Gas and Electric Company and Kentucky Utilities Company, announced that Germany-based E.ON AG, its parent company, and PPL Corporation have entered into a definitive agreement for the sale of E.ON U.S. to PPL for $7.625 billion.

Pennsylvania-based PPL controls or owns nearly 12,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to about 4 million customers in Pennsylvania and the United Kingdom, PPL reported.

“PPL is an outstanding company with a strong commitment to their customers and the communities they serve,” said Victor A. Staffieri, chairman, CEO and president of E.ON U.S.

PPL intends to operate the company as a wholly owned subsidiary of PPL Corporation, retaining the headquarters in Louisville, as has been the case with E.ON AG ownership. Customers will continue to be served by LG&E and KU, with operational headquarters in Louisville and Lexington, respectively, according to a press release.

“With LG&E and KU we have found strategic partners that will benefit our shareholders as well as the Commonwealths of Kentucky and Virginia,” said James H. Miller, PPL’s chairman, president and chief executive officer. “Through this transaction, we are taking advantage of a rare opportunity to add to the PPL family of companies the experience, talent and values of an organization with a proven track record of cost-effective operations, a strong focus on customer service and constructive regulatory relationships.

“We are committed to becoming a trusted partner and valued corporate citizen in the Commonwealths of Kentucky and Virginia. We are committed to continuing high-quality service to customers, preserving jobs and maintaining the management team and corporate headquarters in Kentucky,” continued Miller. “Together, we expect to build on each company’s superior track record for customer service and dedication to the communities we serve.”

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