Entergy To Divest Gas Distribution Business To Bernhard Capital For $484 Mln In Cash

(RTTNews) - Entergy Corporation (ETR), an electric power provider, said on Monday that it has inked a deal to sell its gas distribution business to Bernhard Capital Partners, a private equity management firm, for around $484 million in cash. The transaction is expected to be closed in around 21 months.

Drew Marsh, CEO of Entergy, said: "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."

Entergy doesn't expect any impact from the transaction on its adjusted earnings per share outlook.

Entergy Louisiana's gas business serves around 95,000 homes and businesses in the Baton Rouge area, whereas Entergy New Orleans serves approximately 109,000 homes and businesses in New Orleans.

The company expects to utilize the net proceeds from the transaction to repay debt and fulfill its capital requirements.

Based in Baton Rouge, Louisiana, Bernhard Capital is focused on investing in companies that provide critical services to the government, infrastructure, industrial, utility, and energy sectors, as well as investing in utility assets.

To date, Bernhard Capital has invested in over 65 service-focused companies across 19 platforms, which collectively employ over 19,000 people globally.