CMS Energy Announces Sale of Banking Subsidiary for $960 Million

(June 8, 2021 5:38 PM) CMS Energy today announced that it is selling its wholly-owned subsidiary, EnerBank USA, to Regions Bank, a subsidiary of Regions Financial Corporation for $960 million. The all-cash transaction is expected to close in the fourth quarter of 2021, subject to regulatory approvals and other closing conditions.

“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 Garrick Rochow, President and CEO of CMS Energy. “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.”

EnerBank USA is a national consumer lender company specializing in home-improvement loans and is based in Salt Lake City, Utah.

In a press statement, CMS Energy reaffirmed its consolidated full-year 2021 adjusted earnings guidance of $2.83 – $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 – $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, Chairman of the Board of EnerBank and Executive Vice President and Chief Financial Officer of 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.”

Jackson based CMS Energy is the parent company of Consumers Energy.