Emera Closes Acquisition of TECO Energy
Emera Inc. (“Emera”) (TSX:EMA) today announced that it has completed the acquisition of all outstanding shares of TECO Energy,
Inc. (“TECO Energy”) for approximately US$6.5 billion (“Acquisition”).
TECO Energy is a perfect fit for Emera’s strategy due to its business and generation mix. It expands Emera’s platform into
markets where there are significant growth opportunities, and is expected to increase the portion of Emera’s earnings from
rate-regulated businesses to almost 85 percent of adjusted net income. With this acquisition, Emera becomes a top 20 North American
regulated utility with added geographic, regulatory and business diversification.
The Acquisition is expected to be significantly accretive to Emera’s earnings per common share, with 5 percent accretion in the
first full year of operations (2017)1, growing to more than 10 percent by the third full year (2019)1.
“The acquisition of TECO Energy advances a number of important strategic objectives for Emera,” said Chris Huskilson, President
and CEO of Emera Inc. “We expect it to be significantly accretive, increase our regulated earnings into the high end of our target
range, provide additional diversification and growth opportunities, and expand Emera into the local gas distribution business.”
As part of Emera’s commitment to the customers and communities in which it operates, operating boards will be established in
Florida and New Mexico, with local business and community leaders on both boards. Tampa Electric and Peoples Gas headquarters will
remain in Tampa, Florida. New Mexico Gas Co. headquarters will remain in Albuquerque, New Mexico.
“At Emera, our people are our greatest strength. Today, we welcome 3,700 new colleagues from across TECO into the Emera family.
We are stronger together,” said Huskilson.
Tampa Electric serves nearly 725,000 customers in West Central Florida; Peoples Gas serves nearly 365,000 customers across
Florida; and New Mexico Gas Co. serves more than 515,000 customers across New Mexico.
As a result of the closing of the Acquisition, trading of TECO Energy, Inc. common stock on the New York Stock Exchange will be
suspended, and these shares will no longer be listed on The New York Stock Exchange. TECO Energy, Inc. shareholders will receive
US$27.55 per share.
About Emera Inc.
Emera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia with approximately
$27.5 billion in assets and 2015 pro-forma revenues of $ 6.3 billion. The company invests in electricity generation, transmission
and distribution, gas transmission and distribution, and utility energy services with a strategic focus on transformation from high
carbon to low carbon energy sources. Emera has investments throughout North America, and in four Caribbean countries. Emera
continues to target having 75-85% of its adjusted earnings come from rate-regulated businesses. Emera’s common and preferred shares
are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, and
EMA.PR.F and instalment receipts are listed and trade under the symbol EMA.IR. Depositary receipts representing common shares of
Emera are listed on the Barbados Stock Exchange under the symbol EMABDR. Additional Information can be accessed at www.emera.com or at www.sedar.com
Forward Looking Information
This news release contains forward-looking information within the meaning of applicable securities laws with respect to the
combined operations of Emera and TECO Energy post-Acquisition, including, among other things, statements relating to growth and
diversification opportunities, increased earnings from rate-regulated businesses, earnings per share accretion and stakeholders
commitments. By its nature, forward-looking information requires the use of assumptions and is subject to inherent risks and
uncertainties. These statements reflect Emera’s current beliefs and are based on information currently available to it. There is
risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be
accurate, that the assumptions may not be correct and that actual results may differ materially from such forward-looking
information. Additional detailed information about these assumptions, risks and uncertainties is included in (i) Emera’s securities
regulatory filings, including under the heading “Business Risks and Risk Management” in Emera’s annual Management Discussion and
Analysis, and under the heading “Principal Risks and Uncertainties” in the notes to Emera’s annual and interim financial statements
which can be found on SEDAR at www.sedar.com and (ii) under the heading “Risk Factors” in TECO Energy’s Annual Report on Form 10-K for the year
ended December 31, 2015, as updated in subsequent filings with the U.S. Securities and Exchange Commission. Except as required by
law, Emera disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
1 Within a stable currency exchange environment; for additional assumptions, see “Forward Looking Information”
Emera:
Investor Relations:
Scott LaFleur, 902-428-6375
scott.lafleur@emera.com
or
Media:
Neera Ritcey, 902-222-2683
neera.ritcey@emera.com
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