Arlington
PE-OWNED
Acquired by Blackstone
What PE Will Likely Do
Blackstone will use significant debt financing to acquire Arlington, burdening the company with high levels of debt
Blackstone will likely pursue dividend recapitalizations, taking on additional debt to pay out dividends to the private equity firm
Blackstone will likely implement aggressive cost-cutting measures, including deferred maintenance and reduced investments in the power grid infrastructure and equipment
Consumers can expect to see a gradual decline in the reliability and quality of power service provided by Arlington, including more frequent outages, slower repairs, and degradation of the grid
Expected Timeline
“0 to 6 months months”
Announcements about 'transforming' and 'optimizing' Arlington's operations
“6 to 12 months months”
First round of staff reductions and potential delays in grid maintenance/upgrades
“12 to 24 months months”
Noticeable increase in power outages and service disruptions as infrastructure is neglected
“24 to 48 months months”
Potential financial distress for Arlington, leading to further cost-cutting and service deterioration
“48 to 60 months months”
Possibility of bankruptcy, restructuring, or a fire sale of Arlington's assets
What You Can Do
Actions
Consumers should be prepared for potential increases in power outages and service disruptions in their area served by Arlington
Consumers may want to consider investing in backup power sources, such as generators or solar power, to mitigate the impact of potential grid reliability issues
Consumers should stay informed about any changes to Arlington's operations and service quality, and be prepared to advocate for reliable and affordable power services in their community
Alternatives
Look for family-owned or employee-owned businesses