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Texas Pacific Group is to buy Portland General Electric from Enron for $2.35bn

An investment consortium led by Texas Pacific Group is to acquire Portland General Electric from Enron for $2.35bn. The transaction value includes $1.1bn of assumed debt.

Portland General is a public electric utility that serves nearly half of Oregon’s population. The sale should put to rest the uncertainty that has hampered the company since Enron’s failure in December 2001. It is the third time that Enron has found a buyer for the utility. A 1999 sale to Sierra Pacific and an October 2001 sale to Northwest Natural Gas both fell through.

‘This is a terrific investment opportunity for us and for Oregon. It enables Portland General Electric to focus on providing outstanding service to its customers, while emphasising independent operation and substantial local participation on its board of directors,’ said David Borderman, founding partner of Texas Pacific Group.

The sale price will represent a loss of approximately $1bn for Enron, which acquired Portland General for $2.1bn in 1996, with an assumed debt of $1bn.

‘Enron and its Official Unsecured Creditors’ Committee believe that this transaction is the best option to deliver maximum value to our economic stakeholders,’ Stephen Cooper, Enron’s chief restructuring officer said.

‘We’re pleased to have such high quality investors who understand local concerns,’ added Peggy Fowler, chairman and CEO of Portland General Electric. ‘We are hopeful we can work through the bankruptcy and OPUC processes to complete this transaction and bring renewed stability to the company.’

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