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Vistra Energy to Expand Retail Business with $328M Acquistion


Irving, Texas. February 12, 2019

Vistra Energy Corp. has entered into an agreement to acquire Crius Energy Trust for about $328 million, the company announced in a news release Thursday.

The move comes as Irving-based Vistra (NYSE: VST) seeks to expand its retail business. With the acquisition of Crius Energy, Vistra would serve 19 states and the District of Columbia in the electricity and natural gas product market for residential and small business customers.

Vistra plans to fund the deal with cash on-hand, in addition to taking on Crius Energy's net debt of about $108 million. Vistra does not expect its capital allocation or deleveraging plans to change with the tuck-in.

Norwalk, Connecticut-based Crius Energy's assets are expected to complement Vistra's generation fleet — adding about 11.6 TWhs of load — and existing municipal aggregation and large commercial and industrial portfolio in the Midwest and Northeast markets, according to the release.

The transaction has already been approved by Crius Energy's board of directors. It is still subject to approval of at least two-thirds of Crius Energy's unitholders, in addition to regulatory approvals.

Pending approvals, the deal is anticipated to close in the second quarter of 2019.

RBC Capital Markets and Latham & Watkins are serving as financial advisor and legal advisor to Vistra.

Crius Energy, which is traded on the Toronto Stock Exchange, has jumped more than 36 percent in midday trading. Vistra is trading up only slightly on today's announcement and is up more than 36 percent year-over-year.

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