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Algonquin Power & Utilities Corp. Enters an Agreement to Acquire New England Gas Company
By: PR Newswire
Feb. 11, 2013 06:20 PM
OAKVILLE, ON, Feb. 11, 2013 /PRNewswire/ - Algonquin Power & Utilities Corp. ("APUC") (TSX: AQN) today announced that an APUC subsidiary entered into an agreement with The Laclede Group, Inc. ("Laclede") to assume Laclede's rights to purchase the assets of New England Gas Company ("New England Gas") from an affiliate of Southern Union Company. New England Gas is a natural gas distribution utility serving over 50,000 customers in Massachusetts. The acquisition is subject to certain approvals and conditions, including state and federal regulatory approval, and is expected to close in the second half of 2013.
Total consideration for the utility asset purchase is approximately U.S. $74 million, subject to working capital and closing adjustments. The acquisition will be funded using a targeted 52% equity, 48% debt capital structure and will include the assumption of $19.5 million of existing debt. Net property, plant and equipment expected on closing is U.S. $73.9 million, with a 2013 expected earnings before interest, tax, depreciation and amortization multiple of 7.8x.
"The New England Gas acquisition further expands APUC's footprint in the eastern United States region and will integrate well with our existing New England utility operations", commented Ian Robertson, Chief Executive Officer of APUC. "The acquisition again demonstrates our ability to acquire attractive utility operations in the United States particularly in supportive regulatory environments such as Massachusetts."
New England Gas has a capable and experienced work force and APUC's subsidiary intends to make offers of continuing employment to all current employees of the utility.
For additional information on the acquisition, please visit http://investors.algonquinpower.com/mna.aspx?iid=4142273
About Algonquin Power & Utilities Corp.
Caution Regarding Forward-Looking Information
SOURCE Algonquin Power & Utilities Corp.
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