Transaction Highlights:
- APUC has entered into a definitive agreement to acquire
St. Lawrence Gas Company, Inc. ("SLG")
- SLG is a rate-regulated natural gas distribution utility
serving approximately 16,000 customers in northern New York State
- Total purchase price for the transaction is U.S.
$70 Million, less total third-party
debt of SLG outstanding at closing, and subject to customary
working capital adjustments
- Closing of the transaction remains subject to regulatory
approval and other necessary closing conditions, and is expected to
occur in 2018
OAKVILLE, ON, Aug. 31,
2017 /PRNewswire/ - Algonquin Power & Utilities Corp. (TSX:
AQN, NYSE: AQN) ("APUC") announced today that its subsidiary
Liberty Utilities Co. ("Liberty Utilities"), APUC's regulated
distribution utility business, has entered into a definitive
agreement with Enbridge Gas Distribution Inc. ("Enbridge Gas
Distribution"), a subsidiary of Enbridge Inc. (TSX: ENB), to
acquire St. Lawrence Gas Company, Inc., a regulated natural gas
distribution utility located in northern New York State, and its subsidiaries.
SLG 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 SLG 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," commented Ian
Robertson, Chief Executive Officer of APUC. "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
SLG indebtedness which will be assumed by Liberty Utilities at
closing and is currently expected to be approximately U.S.
$10 million. APUC 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. SLG has an experienced and dedicated team, and Liberty
Utilities will provide for continuing employment of current
employees of SLG and its subsidiaries after the closing.
A summary fact sheet can be found under Investor Centre / Asset
Summaries on APUC's web site at
www.AlgonquinPowerandUtilities.com.
About Algonquin Power & Utilities Corp.
APUC is a North American diversified generation, transmission
and distribution utility with $10
billion of total assets. Through its two business groups,
APUC provides rate regulated natural gas, water, and electricity
generation, transmission, and distribution utility services to over
700,000 customers in the United
States, and is committed to being a North American leader in
the generation of clean energy through its portfolio of long term
contracted wind, solar and hydroelectric generating facilities
representing more than 1,250 MW of installed capacity. APUC
delivers continuing growth through an expanding pipeline of
renewable energy development projects, organic growth within its
rate regulated generation, distribution and transmission
businesses, and the pursuit of accretive acquisitions. Common
shares and preferred shares are traded on the Toronto Stock
Exchange under the symbols AQN, AQN.PR.A, and AQN.PR.D.
APUC's common shares are also listed on the New York Stock Exchange
under the symbol AQN.
Visit APUC at www.AlgonquinPowerandUtilities.com and
follow us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release contain
information that is forward-looking within the meaning of certain
securities laws, including information and statements regarding
prospective results of operations, financial position or cash
flows. These statements are based on factors or assumptions that
were applied in drawing a conclusion or making a forecast or
projection, including assumptions based on historical trends,
current conditions and expected future developments. Since
forward-looking statements relate to future events and conditions,
by their very nature they require making assumptions and involve
inherent risks and uncertainties. APUC cautions that although it is
believed that the assumptions are reasonable in the circumstances,
these risks and uncertainties give rise to the possibility that
actual results may differ materially from the expectations set out
in the forward-looking statements. Material risk factors include
those set out in the management's discussion and analysis section
of APUC's most recent annual report, quarterly report, and APUC's
Annual Information Form. Given these risks, undue reliance should
not be placed on these forward-looking statements, which apply only
as of their dates. Other than as specifically required by law, APUC
undertakes no obligation to update any forward-looking statements
or information to reflect new information, subsequent or
otherwise.
SOURCE Algonquin Power & Utilities Corp.