Entergy Corp ETR has agreed to sell its gas distribution business to Bernhard Capital Partners, a services and infrastructure-focused private equity management firm, for approximately $484 million in cash, subject to certain adjustments.
Entergy Louisiana's gas business serves approximately 95,000 homes and businesses in the Baton Rouge area, and Entergy New Orleans' gas business serves approximately 109,000 homes and businesses in New Orleans.
The net proceeds from the transaction will be used to strengthen Entergy's credit through the repayment of debt and to support customer-centric capital needs.
"This agreement allows us to continue our strategy of simplifying operations and focusing on our regulated electric utility business for the benefit of our customers," said Chairman and CEO Drew Marsh.
The sale will require regulatory approvals by the Louisiana Public Service Commission, the City of Baton Rouge/East Baton Rouge Parish Metropolitan Council and the New Orleans City Council.
The sale is expected to close in approximately 21 months.
Price Action: ETR shares are trading higher by 2.46% at $93.63 on the last check Monday.
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