Global Leader in International Oil and Gas Industry News

posted in:

Algonquin Power & Utilities Corp. enters an agreement to acquire New England Gas company

Tuesday, Feb 12, 2013

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.

Algonquin Power & Utilities Corp. owns and operates a diversified $3.0 billion portfolio of regulated and non-regulated utilities in North America. The company's regulated utility business provides water, electricity and natural gas utility services to more than 350,000 customers through its nationwide portfolio of regulated generation, transmission and distribution utility systems. The company's non-regulated electric generation subsidiary owns or has interests in renewable energy and thermal energy facilities representing more than 1,100 MW of installed capacity.

Algonquin delivers continuing growth through an expanding pipeline of renewable power and clean energy projects, organic growth within its regulated utilities and the pursuit of accretive acquisition opportunities. Common shares and preferred shares are traded on the Toronto Stock Exchange under the symbols AQN and AQN.PR.A respectively. Visit Algonquin Power and Utilities at www.AlgonquinPowerandUtilities.com and follow us on Twitter @AQN_Utilities.

SOURCE Algonquin Power & Utilities Corp.

To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today

posted in:

Other Oil & Gas News

Gazprom and Austria point out relevancy of alternative Russian gas routes to Europe 24-04-2014
Irving Oil Completes Voluntary Conversion of its Crude Oil Railcar Fleet 24-04-2014
Tethys Petroleum Press Release Thursday, April 24, 2014 - Third Successful Gas Well in Kazakhstan 24-04-2014
Kentz awarded a US$125m 5 year contract in Kuwait by Fluor 24-04-2014
TGS announces two new projects in the Norwegian Barents Sea 24-04-2014
CNOOC Ltd offers $4bn bonds 24-04-2014
Major subsea contract sees Expro expand operations in Azerbaijan 24-04-2014
What America is thinking on energy issues – Poll announces large majorities of Virginia voters support investments in oil and natural gas 24-04-2014
Dion Oil and CITGO Petroleum help fuel South Florida agriculture 24-04-2014
The Petroleum Connection releases agenda for 2nd annual oilfield housing solutions conference at minute maid park in Houston on May 1 & 2 24-04-2014