Published: November 2, 2023 |

[Click image to enlarge]

[Click image to enlarge]

Entergy has entered into an agreement 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 purchase price 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.

“We are pleased to partner with Bernhard Capital, who shares our values around employee engagement, safety and reliability performance, quality customer service, and local community investment,” said Drew Marsh, chairman and chief executive officer for Entergy.

“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. Our gas utilities and dedicated gas employees have been and continue to be an integral part of Entergy, which is why it was imperative to approach this decision with thoughtful and deliberate consideration. I want to thank our employees for their hard work and accomplishments,” added Marsh.

“Our work is focused on strengthening businesses to, in turn, strengthen some of our country’s most critical infrastructure assets. Under Entergy’s leadership, the natural gas distribution business has effectively served the two largest metropolitan areas in our state for decades. We believe this operation is primed to provide even greater services to Louisiana communities and beyond. We have an experienced leadership team prepared to lead it through strategic, transformational growth,” said Jeff Jenkins, founder and partner at Bernhard Capital Partners.

“This agreement is the catalyst to significant investment and opportunity for current employees, customers, and our state. In fact, we anticipate creating more than 100 new, high-paying jobs for Louisiana residents through this investment. We look forward to welcoming all of the business’ current employees into the family of Bernhard Capital’s portfolio companies and working together to make positive impact on the communities we serve,” added Jenkins.

Based in Baton Rouge, Louisiana, Bernhard Capital focuses on investing in companies that provide critical services to government, infrastructure, industrial, utility, and energy sectors, as well as investing in utility assets. To date, Bernhard Capital has invested in more than 65 services-focused companies across 19 platforms, including several utility companies, that collectively employ more than 19,000 people globally.

In addition to customary closing conditions, 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, inclusive of the regulatory review process and a transition period.

Entergy remains committed to the safe and reliable operation of its gas distribution business through the close of the transaction. If approved, Entergy will actively work to ensure a smooth transition of the gas business to Bernhard Capital.

Entergy is a Fortune 500 company that powers life for 3 million customers through our operating companies in Arkansas, Louisiana, Mississippi, and Texas. They are investing in the reliability and resilience of the energy system while helping our region transition to cleaner, more efficient energy solutions. With roots in its communities for more than 100 years, Entergy is a nationally recognized leader in sustainability and corporate citizenship. Since 2018, they have delivered more than $100 million in economic benefits each year to local communities through philanthropy, volunteerism, and advocacy. Entergy is headquartered in New Orleans, Louisiana, and has approximately 12,000 employees.

Bernhard Capital Partners is a services and infrastructure-focused private equity management firm established in 2013. Bernhard Capital Partners has deployed capital in four funds across several strategies and has approximately $3.4 billion of gross assets under management. The principals of Bernhard Capital have a proven track record of operational expertise, focusing on employee engagement and investing in the communities they serve. Bernhard Capital Partners seeks to create sustainable value by leveraging its experience in acquiring, operating and growing services and infrastructure businesses.

Be in-the-know when you’re on-the-go!

CLICK HERE to register your email address.

Copyright © 2023 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

For licensing permission, .(JavaScript must be enabled to view this email address)