The Canada-based electric and gas utility Fortis Inc. today announced it will buy Novi-based ITC Holdings Corp., one of the United States’ largest independent electric transmission companies, for $11.3 billion.
“Fortis is an outstanding company with a proven track record of successfully acquiring and managing U.S.-based utilities in a decentralized manner,” says Joseph Welch, chairman, president, and CEO of ITC.
Under the terms of the deal, ITC shareholders will receive $22.57 in cash and .75 Fortis shares per ITC share. ITC shareholders will receive about $6.9 billion in Fortis common shares and cash at closing and Fortis will assume $4.4 billion of consolidated ITC debt. Upon completion of the acquisition, ITC will become a subsidiary of Fortis, and about 27 percent of common shares of Fortis will be held by ITC shareholders.
“The acquisition of ITC — a premier pure-play transmission utility — is a continuation of (our) growth strategy,” says Barry Perry, president and CEO of Fortis. “ITC not only further strengthens and diversifies our business, but it also accelerates our growth.”
Perry says following the acquisition, Fortis will be one of the top 15 North American public utilities ranked by enterprise value, with an estimated value of $30 billion.
ITC Holdings owns and operates high-voltage transmission facilities in Michigan, Iowa, Minnesota, Illinois, Kansas, and Oklahoma. Newfoundland-based Fortis serves more than three million customers across Canada, the United States, and the Caribbean.
