Trystan Casey
In 2020, El Paso Electric Company was acquired by the Infrastructure Investments Fund (IIF), an investment fund controlled by JPMorgan Chase. The sale was valued at $4.3 billion, including the assumption of El Paso Electric's existing $1.5 billion debt. The acquisition was approved by the Federal Energy Regulatory Commission and local regulators, with IIF committing to maintain the company's headquarters in El Paso and its current employment levels. As a result of the sale, El Paso Electric is no longer publicly traded or listed on the New York Stock Exchange.
Explore related products
What You'll Learn
The sale of El Paso Electric Company was worth $4.3 billion
The El Paso Electric Company was sold for $4.3 billion to JP Morgan's Infrastructure Investments Fund (IIF). The sale was announced in June 2019 and was completed in July 2020, after receiving approval from the Federal Energy Regulatory Commission, Texas regulators, and El Paso's local lawmakers.
The $4.3 billion valuation included IIF assuming El Paso Electric's existing $1.5 billion debt and purchasing the company's stock at $68.25 per share, which amounted to approximately $2.8 billion. This represented a 17% increase over the company's closing share price on May 31, 2019, the last trading day before the acquisition agreement was announced.
As part of the agreement, IIF committed to keeping the company's headquarters in El Paso and maintaining current employment levels for at least five years. El Paso Electric's CEO, Mary Kipp, stated that the acquisition by IIF would provide financial clout and a long-term partnership for the company. The sale also included a one-time $21 million credit for El Paso customers and an $8.7 million credit for New Mexico customers, resulting in a decrease in average monthly bills.
The Infrastructure Investments Fund is a New York-based investment fund controlled by global financial giant JP Morgan. The fund has a portfolio of 19 companies across the United States, Europe, and Australia, including 11 companies in the energy, utility, and electric generation business. The acquisition of El Paso Electric marked its first electric utility investment in the United States.
Who Illuminated Edison's Company?
You may want to see also
Explore related products
The company was purchased by JP Morgan's Infrastructure Investments Fund
The El Paso Electric Company, a 117-year-old utility with about 428,000 customers in the El Paso area and southern New Mexico, was purchased by JP Morgan's Infrastructure Investments Fund (IIF) for $4.3 billion. The deal, which included the assumption of $1.5 billion of the utility's debt, was finalized on June 1, 2019, and marked the end of El Paso Electric's existence as a publicly traded company.
IIF is an investment fund advised and managed by JPMorgan Investment Management's Infrastructure Investments Group. The fund has interests in the U.S., Europe, and Australia, with a focus on growing retirement funds for families. IIF's acquisition of El Paso Electric was facilitated by Andrew "Landy" Gilbert, the investment fund's managing director, who saw the company as a good investment due to its presence in a growing area.
The sale of El Paso Electric to IIF was met with some concerns. Prior to the deal, El Paso Electric had reported no financial issues that would necessitate a sale. Additionally, the purchasers initially denied an affiliate relationship with JP Morgan at the federal level, only to admit it at the state level. Despite these concerns, the sale received approval from Texas regulators, El Paso's local lawmakers, and the Federal Energy Regulatory Commission.
As a result of the acquisition, El Paso Electric's headquarters remained in El Paso, and the company committed to maintaining current employment levels. The new ownership also appointed Kelly Tomblin, who has extensive experience in the energy industry, as the CEO of El Paso Electric.
Electric Company in Jacksonville, FL: Who Powers the City?
You may want to see also
Explore related products
The sale was approved by 99.61% of shareholders
The sale of El Paso Electric Company to JP Morgan's Infrastructure Investments Fund (IIF) was overwhelmingly approved by the company's shareholders, with 99.61% voting in favour of the deal. The $4.3 billion sale, which included IIF assuming El Paso Electric's existing $1.5 billion debt, represented a significant premium on the company's recent stock price. Shareholders received $68.25 per share, a 17% increase over the closing price on the last trading day before the acquisition agreement was announced.
The strong support from shareholders can likely be attributed to the attractive terms of the deal, which offered a substantial return on their investment. Additionally, the sale was expected to bring other benefits, such as local job retention and economic development in the region. El Paso Electric's CEO, Mary Kipp, emphasised the shared vision between the company and IIF for local job retention and growth, as well as their commitment to investing $100 million in an Economic Sustainability Fund to promote economic development in the area.
The approval of the sale by shareholders was a crucial step in the process of transferring ownership of El Paso Electric to IIF. This shareholder approval, combined with the subsequent approvals from government regulators, paved the way for the successful completion of the acquisition.
The high level of shareholder approval also reflects the confidence that investors had in the potential benefits of the sale. By accepting the offer from IIF, shareholders recognised the value of the proposed transaction and the opportunity it presented for the company's future growth and development.
Furthermore, the sale to IIF, a fund with a strong presence in the energy and utility sectors, signalled a strategic move for El Paso Electric. With IIF's expertise and resources, there were prospects for expansion and enhanced operational capabilities within the energy industry.
Electric Company Options for Dartmouth, MA Residents
You may want to see also
Explore related products
The new CEO of El Paso Electric is Kelly Tomblin
El Paso Electric Company has a new CEO, Kelly Tomblin, who took over following the $4.3 billion sale of the company to an investment fund controlled by global financial giant JP Morgan. Tomblin has more than 30 years of experience in the energy industry, working in the US, the Caribbean, the United Kingdom, and Latin America. She has been instrumental in positioning utilities and related industries as leaders in the energy sector by developing new visions and strategic directions crucial to their success.
Before joining El Paso Electric, Tomblin served as President, CEO, and Board Member of INTREN (MASTEC), a utility contractor based in Illinois, and Jamaica Public Service, the utility that serves Jamaica and the West Indies. While in Jamaica, she also served on the Caribbean Utilities Board. As Regional VP of International Power/Engie, she led business development activities that resulted in significant growth and market expansion. Prior to ENGIE, she was President of Pennsylvania Electric Company, a subsidiary of First Energy Corporation.
Tomblin's work at El Paso Electric has been focused on operational improvement and public image enhancement. She has launched multiple key initiatives, including a newly envisioned strategic plan, smart metering and automated system technology, transportation electrification, and electric vehicle infrastructure deployment.
The sale of El Paso Electric to JP Morgan's Infrastructure Investments Fund (IIF) was first announced in 2019 and completed in 2020. The company is no longer publicly traded and is now owned by the JPMorgan Chase-tied IIF. The deal included the assumption of $1.5 billion of the utility's debt by IIF. El Paso Electric's new board chairman is Frank Cassidy, who previously worked for Public Service Enterprise Group, a large electric and natural gas utility operator in Newark, New Jersey.
Electric Companies in Bruceton, TN: Who Powers the Town?
You may want to see also
Explore related products
![Mergers & Acquisitions Bible: [3 in 1] The Most Updated and Practical Guide to the M&A Process](https://m.media-amazon.com/images/I/61v2VprGNHL._AC_UY218_.jpg)
The company will remain headquartered in El Paso
The El Paso Electric Company, a 117-year-old utility, was sold to JP Morgan's Infrastructure Investments Fund (IIF) for $4.3 billion in 2020. The sale included IIF assuming EPE's existing $1.5 billion in debt and purchasing the company's stock at $68.25 per share, which amounted to $2.8 billion.
As part of the agreement, IIF committed to keeping the company's headquarters in El Paso, Texas, and retaining the existing staff for at least five years. This commitment was made to earn local support for the sale and ensure the stability of the company's operations in the region.
The company's new CEO, Kelly Tomblin, brings decades of experience in the energy industry, having previously served as CEO of Jamaica Public Service Company and INTREN, a utility contractor based in Illinois. The new ownership has expressed a shared vision for local job retention and growth, as well as a commitment to investing in the community and promoting renewable energy resources.
With the acquisition, El Paso Electric is no longer a publicly traded company and has been delisted from the New York Stock Exchange. The company's new board of directors includes individuals with strong community ties and expertise in regulated utilities, ensuring independent local oversight and support for the company's growth and mission.
Electric Company Services in Cottonwood: Who Powers the Town?
You may want to see also
Frequently asked questions
El Paso Electric Company was bought by the Infrastructure Investments Fund (IIF), a fund controlled by JPMorgan Chase.
The sale was valued at \$4.3 billion, including the assumption of \$1.5 billion of the utility company's debt.
Kelly Tomblin was appointed as the new CEO of El Paso Electric Company after the acquisition.
