Energy East sold for $4.5 billion by Jeff Platsky

A Spanish company has agreed to acquire Energy East for $4.5 billion, the companies announced this afternoon.

Under the terms of the deal, the company will pay $28.50 for each share of Energy East stock, a 26 percent premium over the Monday's closing price.

The company acquiring Energy East is IBERDROLA, which is described as a "global energy Platform."

"The combination with Energy East fits with the philosophy of our Strategic Plan, will serve to enhance the international expansion we initiated several years ago in markets with stable growth, and consolidates our position as one of the world's leading electricity companies," said IBERDROLA Chairman and CEO, Ignacio Galan said.

Energy East has been the subject of acquisition rumors for several years. Wesley W. von Scack said last year that the energy industry was undergoing upheaval, and expected there to be some consolidation of transmission and distribution companies, though he would not speculate on future of Energy East.

"This transaction is a unique opportunity to deliver enhanced value to Energy East's shareholders and to build a stronger future for our company, employees and the states we serve," said von Schack.

"The energy industry is at a major inflection point," continued von Schack. "Policymakers now recognize the need for our industry to make significant investments in our energy infrastructure. Our objective is to team with the States in which we do business to help meet the goals they have established to increase renewable sources of energy, improve energy efficiency, and invest in a secure and reliable energy infrastructure. We believe our combination with IBERDROLA will not only accelerate our progress but will transform the way we do business."

"Furthermore, while IBERDROLA is a global energy company, its operations are managed locally. I'm therefore delighted to assure Energy East's three million customers that they can continue to rely on the same local people whom they've come to know and trust to provide exceptional customer service," concluded von Schack.