MDU Resources Group, Inc.NYSE
Jul. 13, 2015, 3:41 AM
- Diversified energy firm Black Hills (NYSE:BKH) has agreed to acquire natural-gas utility SourceGas Holdings for $1.89B from investment funds managed by General Electric (NYSE:GE) and Alinda Capital Partners.
- The deal allows the South Dakota based Black Hills to expand in Colorado, Nebraska, Wyoming and Arkansas, and "will add meaningfully to Black Hills' earnings per share beginning the first calendar year after closing," the company said.
- Black Hills expects that closing to come in H1 2016, at which point the utility will assume $720M of debt.
- SourceGas has 425,000 customers and a 512-mile transmission pipeline in Colorado. The combined company will have over 1.2M customers.
- SourceGas had also attracted interest from other prospective buyers, including MDU Resources (NYSE:MDU). (PR)