OAKVILLE, ON, Feb. 11, 2013 /CNW/ - 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.
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 and 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.
