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DAYTON, Ohio (


) --


(AES) - Get AES Corporation Report

agreed to acquire



, the parent company of Dayton Power & Light, for $3.5 billion, or $30 a share.

The acquisition price is an 8.7% premium over DPL's closing price Tuesday of $27.59.

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AES also will assume $1.2 billion in DPL's net debt, giving the deal an enterprise value of $4.7 billion.

The acquisition, approved by the boards of both companies, is expected to close in six to nine months.

"We are concentrating our growth efforts in a few key markets, including the U.S. utility sector, where we see opportunities to leverage our global platform of 40,500 MW and 11.5 million utility customers," said Paul Hanrahan, AES president and CEO, in a statement Wednesday. "The DPL acquisition is expected to be value and earnings accretive, benefiting from the regional scale provided by our nearby utility business at Indianapolis Power & Light Company."

DPL serves more than 500,000 customers in West Central Ohio.

AES said it expects 2012 adjusted earnings of $1.27 to $1.37 a share. The outlook includes earnings of 5 cents to 7 cents a share from the DPL acquisition.

-- Written by Joseph Woelfel

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Joseph Woelfel

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