Algonquin Power & Utilities Corp today announced that Liberty Energy Utilities Co, its regulated utility subsidiary, is to acquire two utilities in New Hampshire from National Grid USA.
The Oakville, Ontario-based utility said Liberty Energy has entered into agreements to acquire all issued and outstanding shares of Granite State Electric Company, a regulated electric utility, and EnergyNorth Natural Gas Inc, a regulated natural gas utility, for a total consideration of US$285 million.
Granite State is a regulated electric distribution company providing electric service to over 43,000 customers in 21 communities in New Hampshire. Granite State's load and customer count have shown a consistent 1.6 percent compounded annual growth over the past 10 years.
EnergyNorth is a regulated natural gas distribution utility providing natural gas services to over 83,000 customers in five counties and 30 communities in New Hampshire. It has a well diversified customer base with no individual customer accounting for more than 3 percent of gas volumes delivered.
Both Granite State and EnergyNorth have capable and experienced work forces. Liberty Energy intends to make offers of continuing employment to all current Granite State and EnergyNorth employees.
The transactions are subject to conditions including state and federal regulatory approval, and are expected to close in the fall of 2011. Financing of the acquisitions is expected to occur simultaneously with the closing of the transactions.
"The acquisition of these attractive businesses represent the continuation of APUC's regulated utility growth strategy, and will provide long-term, predictable and accretive earnings to APUC," commented chief executive officer Ian Robertson.
"The expansion of our regulated utility footprint into the attractive New Hampshire regulatory environment and a geographic region where we already have a substantial presence through our renewable energy business is consistent with our plan to maximize synergies between our power and utilities businesses."
