Vistra Goes Nuclear with $3.4B Cash and Stock Purchase of Energy Harbor

Vistra Corp, an Irving, TX-based energy generator will acquire Ohio-based Energy Harbor Corp in a $3.4 billion deal including debt, aiming to expand its nuclear power generation capacity and become a premier zero-carbon generation and retail growth company.

Energy Harbor’s three nuclear power plants – Davis-Besse and Perry in Northern Ohio, as well as Beaver Valley in Pennsylvania – will become part of a newly-formed Vistra subsidiary called Vistra Vision.

Most Energy Harbor shareholders will receive cash at closing, and the two largest shareholders – investment firms Avenue Capital Group and Nuveen – will receive a combination of cash and a 15% ownership interest.

Vistra Vision will assume $430 million of net debt from Energy Harbor and will continue to own 85% of Vistra Vision, as well as 100% of Vistra Tradition, its gas and coal generation fleet.

The deal would help Vistra add about 4,000 megawatts of nuclear capacity and about one million retail customers. The company also announced additional share buybacks worth $1 billion.

Following the close of the transaction, the combined company will be led by Jim Burke, Vistra’s president and CEO, and will continue to trade on the NYSE under ticker VST.