Southern Company to Sell Utilities in $1.7 Billion Deal

Pivotal Utility Holdings, Inc., a subsidiary of Southern Company Gas, has entered into agreements to sell the assets of its utility operating divisions, Elizabethtown Gas and Elton Gas, to South Jersey Industries in an all-cash transaction with an enterprise value of approximately $1.7 billion. Southern Company Gas is a subsidiary of Southern Company.

“This transaction, which we anticipate completing by third quarter 2018, will strengthen the balance sheets of Southern Company Gas and Southern Company by reducing existing financing requirements,” said Thomas A. Fanning, chairman, president and CEO of Southern Company. “In addition to maximizing value for Southern Company shareholders, the transaction is beneficial to our company and aligns with our overall business strategy to drive growth and prosperity.”

The transaction, which is expected to be operationally seamless to customers, is designed to ensure that Elizabethtown Gas and Elkton Gas will continue their customer-focused business model and strong commitment to safety, reliability, excellent customer service and giving back to the communities where they are privileged to serve.

The transaction is subject to regulatory approval by the New Jersey Board of Public Utilities and Maryland Public Service Commission, the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and certain limited approvals by the Federal Energy Regulatory Commission and the Federal Communications Commission.