JACKSON—CMS Energy Corp. (NYSE: CMS), the Jackson-based utility holding company, announced the sale of its subsidiary, the Salt Lake City, Utah-based home improvement lender EnerBank USA, to Regions Bank, a subsidiary of Birmingham, Ala.-based Regions Financial Corp. (NYSE: RF) for $960 million in cash.
“EnerBank has been a great part of the CMS Energy family, has delivered exceptional value to all stakeholders and we are excited for its future with Regions,” said CMS Energy President and CEO Garrick Rochow. “This transaction improves CMS Energy’s risk profile and keeps us on track to deliver 6 to 8 percent long-term adjusted EPS growth for our investors.”
CMS Energy reaffirmed its consolidated full-year 2021 adjusted earnings guidance of $2.83 to $2.87 per share assuming the transaction closes in the fourth quarter of 2021; and maintained its annual dividend per share of $1.74. Until the closing of the transaction, EnerBank’s earnings will be reported in discontinued operations. CMS Energy also introduced 2022 adjusted earnings guidance of $2.85 to $2.87 per share, reflecting the exclusion of EnerBank, and reaffirmed long-term adjusted EPS growth of 6 to 8 percent.
“We owe a large debt of gratitude to the leadership team and employees of EnerBank for delivering consistent industry-leading financial performance over the past several years,” said Rejji Hayes, EnerBank board chair and executive vice president and CFO at CMS Energy. “The proceeds from the transaction will be reinvested in our core business to fund key initiatives related to safety, reliability and our clean energy transformation.”
CMS Energy (NYSE: CMS) is a Michigan-based energy provider featuring Consumers Energy as its primary business. It also owns and operates independent power generation businesses.
To view a presentation on the transaction, visit www.cmsenergy.com and select “Events and Presentations.”