PPL Corp acquires Central Networks (Central Networks East plc and Central Networks West plc)

PPL Corp acquired Central Networks (Central Networks East plc and Central Networks West plc) for Approximately £4.1 billion total at close, comprising approximately £3.6 billion ($5.7 billion) in cash plus approximately £500 million ($800 million) of assumed existing public debt, a transaction completed in April 2011, structured as all cash (acquisition financed via syndicated bridge facility, then permanent equity and debt).

Central Networks (Central Networks East plc and Central Networks West plc) operates in Regulated electric distribution (United Kingdom), is based in Midlands, central England, United Kingdom (serving ~5 million customers). Central Networks was the second-largest electricity distribution business in the United Kingdom, serving approximately 5 million customers in the Midlands area of central England through Central Networks East plc and Central Networks West plc. PPL acquired the business, through its U.K. subsidiaries, from E.ON UK plc.

PPL described the deal as a strategic, transformational transaction that further expanded its regulated electricity operations in a way that enhanced shareowner value and was immediately accretive to 2011 earnings and cash flow. Because the Central Networks and PPL's existing Western Power Distribution service territories were contiguous, PPL expected significant operating synergies, making the combined operation the largest electricity network in the U.K.

The second-largest U.K. electricity distribution network, contiguous with PPL's existing Western Power Distribution territory, offering significant synergies and immediate earnings accretion in a stable, regulated business. PPL expected significant synergies because the WPD and Central Networks service territories were contiguous; the combined operation became the largest electricity network in the U.K. Combined with PPL's existing Western Power Distribution (WPD) U.K. distribution business