CHICAGO, July 20 /-/ -- Integrys Energy Group, Inc. (NYSE: TEG) today announced that its nonregulated energy subsidiary, Integrys Energy Services Inc., has signed an agreement to sell its energy consulting business to Minneapolis-based U.S. Energy Services, Inc. for an undisclosed sum. The transaction, which requires certain contractual consents, is expected to close in the third quarter of 2009.
Financial terms of the transaction are not being disclosed, but the value realized is in line with Integrys Energy Group's recovered capital expectations associated with its nonregulated segment divestiture plans.
Through its energy consulting business, Integrys Energy Services provides energy advisory and information services for facility and corporate customers in the areas of risk management, strategic sourcing, utility data management, and demand-side energy management. This activity required negligible collateral support and generated sales of approximately $4 million in 2008.
J.P. Morgan Securities Inc. acted as exclusive financial advisor to Integrys Energy Group and Thorndike Landing acted as lead advisor to Integrys Energy Services for this transaction.
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they do not relate strictly to historical or current facts and often include words such as "anticipate," "expect," "intend," and other similar words. Forward-looking statements are beyond the ability of Integrys Energy Group to control and, in many cases, Integrys Energy Group cannot predict what factors would cause actual results to differ materially from those indicated by forward-looking statements. Please see Integrys Energy Group's periodic reports filed with the Securities and Exchange Commission (including its 10-K and 10-Qs) for a listing of certain factors that could cause actual results to differ materially from those contained in forward-looking statements.
About Integrys Energy Group, Inc.
Integrys Energy Group is a diversified holding company with regulated utility operations operating through six wholly owned subsidiaries, Wisconsin Public Service Corporation, The Peoples Gas Light and Coke Company, North Shore Gas Company, Upper Peninsula Power Company, Michigan Gas Utilities Corporation, and Minnesota Energy Resources Corporation; nonregulated operations serving the competitive energy markets in the United States and Canada through its wholly owned nonregulated subsidiary, Integrys Energy Services; and also a 34% equity ownership interest in American Transmission Company LLC (an electric transmission company operating in Wisconsin, Michigan, Minnesota, and Illinois).
More information about Integrys Energy Group, Inc. is available online at www.integrysgroup.com.
About U.S. Energy Services
U.S. Energy Services, based in Minneapolis, offers a portfolio of energy management services to thousands of clients across the United States, including supply procurement and management, price risk management, plant site development, information services and renewable energy. Specifically, it offers gas and electric supply procurement, nominations, physical and financial hedging, tariff analysis and optimization, energy accounting, bill verification and online reporting of usage and costs.
Since 1993, U.S. Energy Services has maintained a large and diversified client base and has upheld a 95% client retention rate. The company has offices in Minneapolis, Kansas City, Omaha, Neb. and Louisville, KY. For more information please visit www.usenergyservices.com.