Ontario-based company to acquire Avista power

Jana Mathia, Gazette Reporter | Jul 27, 20170

Avista Utilities announced July 19 that it will be purchased by Canadian business Hydro One. Hydro One, based out of Toronto, Ontario, is Canada’s largest electricity transmission and distribution provider. The deal is estimated to close in the second half of 2018.

The geographic service territory of the combined company will be larger than the country of France. Assets will be in excess of $25.4 billion with more than two million customers. The acquisition will make Hydro One one of the top 20 North American regulated utilities.

The combination will further reinforce Hydro One as one of the top 20 investor-owned regulated utilities in North America. It became publicly-traded in 2015.

According to Avista and Hydro One, the deal will not impact customer rates or reduce the workforce for either.

Until the deal closes, both entities will continue to operate as two independent companies. Afterward, Avista will retain its name and operation headquarters in Spokane with the same management team and existing employees.

Avista will have a board of nine directors consisting of five members designated by Hydro One, including Mayo Schmidt, president and CEO of Hydro One, and four members designated by Avista, including Scott Morris, the CEO of Avista. Morris will be the chair of the board of Avista post-merger.

Under the terms of the all-cash transaction, which has been unanimously approved by the Board of Directors of both companies, Avista shareholders will receive $53 per share.

The closing of the acquisition, which is expected to occur by the second half of 2018, is subject to Avista common shareholder approval and certain regulatory and government approvals, including approval by the Washington Utilities and Transportation Commission, the Public Utility Commission of Oregon, the Idaho Public Utilities Commission, the Regulatory Commission of Alaska, the Public Service Commission of the State of Montana, the U.S. Federal Energy Regulatory Commission, clearance by the Committee on Foreign Investment in the United States and compliance with applicable requirements under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the satisfaction of customary closing conditions.