Entergy selling gas distribution business to Bernhard Capital Partners for $484M

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 $484M 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. If approved, the net proceeds from the transaction will be used to strengthen Entergy’s credit through the repayment of debt and to support capital needs in its electric utility business. The impact on Entergy’s adjusted EPS outlook is expected to be essentially neutral. 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. The sale is expected to close in approximately 21 months, inclusive of the regulatory review process and a transition period.