Algonquin Power & Utilities to Acquire St. Lawrence Gas Company
Algonquin Power & Utilities’ regulated distribution utility business, Liberty Utilities Co., has entered into a definitive agreement with Enbridge Gas Distribution Inc. , a subsidiary of Enbridge Inc., to acquire St. Lawrence Gas Company, Inc., a regulated natural gas distribution utility located in northern New York State, and its subsidiaries.
St. Lawrence Gas is headquartered in Massena, NY, and provides natural gas distribution to a service territory located in northern New York State paralleling the south shore of the St. Lawrence River. The company’s operations consist of its existing local distribution company business serving approximately 16,000 residential, commercial and industrial customers, a natural gas appliance rental business focused on accelerating natural gas fuel adoption in the franchise area, and a recently completed 48-mile backbone gas distribution expansion into neighboring Franklin County.
“We believe that St. Lawrence Gas represents an attractive opportunity to acquire an established utility franchise which complements the regulated natural gas operations in our Liberty Utilities East Region,” said Ian Robertson, Chief Executive Officer of Algonquin Power & Utilities. “St. Lawrence Gas offers compelling growth potential on a foundation of high quality utility operations and superior customer service. We look forward to working with the teams at Enbridge Gas Distribution and St. Lawrence Gas to secure the required regulatory approvals and deliver a smooth ownership transition.”
The proposed transaction is structured as a stock purchase in exchange for a cash purchase price of U.S. $70 million, less the total amount of outstanding St. Lawrence Gas indebtedness which will be assumed by Liberty Utilities at closing and is currently expected to be approximately U.S. $10 million. Algonquin Power & Utilities will finance the transaction using cash on hand and existing credit facilities. Closing of the acquisition remains subject to regulatory approval and other customary closing conditions, and is expected to occur in 2018.
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