Allentown-based PPL Corporation announced Monday that it had completed the sale of its U.K. utility business, Western Power Distribution.
Western Power was sold to National Grid for £7.8 billion. The transaction is the first of two transactions announced in March intended to reposition PPL as a leading, high-growth, U.S.-focused energy company. The transaction resulted in approximately $10.7 billion in cash proceeds for PPL, or $10.4 billion after taxes and fees. The sale concludes a process started last August when PPL announced it would be exiting the U.K. to focus on U.S. growth.
“Today’s sale recognizes the economic value that PPL created by advancing WPD into the premier collection of electricity distribution networks in the U.K., a company that year after year delivered operational excellence, superior customer satisfaction, and innovative solutions to advance a cleaner energy future,” PPL President and CEO Vincent Sorgi said.
PPL plans to acquire The Narragansett Electric Company, Rhode Island’s primary electric and gas utility, from National Grid for approximately $3.8 billion. The transaction, announced in March 2021, is expected to be completed in March 2022. The remaining $6.6 billion will be used to strengthen PPL’s balance sheet, including reducing its debt by $3 billion to $3.5 billion.
“Together, the sale of WPD and the acquisition of Narragansett Electric will better position PPL for long-term growth and success by simplifying our business mix, strengthening our credit metrics, improving our prospects for long-term earnings growth, and providing us greater financial flexibility to invest in sustainable energy solutions,” Sorgi said.