Algonquin Power & Utilities Corp. Announces Further Expansion of Utility Business in the United States
OAKVILLE, ON, Aug. 8, 2012 /PRNewswire/ – Algonquin Power & Utilities Corp.
(“APUC”) (TSX: AQN) today announced that Liberty Utilities, APUC’s
regulated distribution utility, has entered into an agreement with
Atmos Energy Corporation (“Atmos Energy”) (NYSE: ATO) to acquire
regulated natural gas distribution utility assets (the “Georgia
Utility”) located in Georgia. Additionally, Liberty Utilities recently
reached an agreement to acquire a regulated water distribution utility
in Pine Bluff, Arkansas from United Waterworks Inc. (the “Arkansas
The Georgia Utility provides local natural gas distribution service to
approximately 64,000 customers, and represents an acquisition resulting
from the constructive relationship developed with Atmos Energy during
the recently completed acquisition of natural gas utilities in Iowa,
Illinois, and Missouri. Total purchase price for the Georgia Utility is
approximately U.S. $140.7 million, subject to certain working capital
and other closing adjustments. Liberty Utilities expects to acquire net
property, plant and equipment assets of approximately U.S. $128.1
million, representing a purchase price multiple of approximately 1.1x.
The Georgia Utility has capable and experienced work forces and Liberty
Utilities intends to make offers of continuing employment to all
current employees of the Georgia Utility.
The Arkansas Utility provides water distribution service to
approximately 17,000 customers in the State of Arkansas. Total purchase
price for the Arkansas Utility is approximately U.S. $28.6 million,
subject to certain working capital and other closing adjustments.
Liberty Utilities expects to acquire assets for rate making purposes of
approximately $24.6 million, representing a purchase price multiple of
approximately 1.16x. Liberty Utilities also intends to make offers of
continuing employment to all current employees of the Arkansas Utility.
Closings of the acquisition of the Georgia Utility and the Arkansas
Utility are subject to certain conditions, including state and federal
regulatory approval, and both are expected to occur in mid 2013.
Financing of the acquisitions is expected to occur simultaneously upon
closing of each transaction. Liberty Utilities will not be assuming
any existing indebtedness with either transaction.
“These acquisitions affirm Liberty Utilities’ successful approach to
growth through the continued sourcing of high quality assets from
larger utilities to add to our portfolio”, commented Ian Robertson,
Chief Executive Officer of APUC. “With the recent closing of the
utility acquisition in New Hampshire and the closing of our mid-states
natural gas distribution acquisition from Atmos Energy, we are well
positioned to pursue the regulatory approval and transition activities
associated with these next acquisitions.”
Summary fact sheets on the utilities can be found in the Mergers &
Acquisitions section of the Investor Centre on APUC’s web site at www.algonquinpower.com.
APUC will address questions regarding the acquisitions during the
conference call being held for the second quarter 2012 results at 10:00
a.m. eastern time on Friday, August 10, 2012, hosted by Chief Executive
Officer Ian Robertson and Chief Financial Officer David Bronicheski.
Conference call details are as follows:
Date: Friday, August 10, 2012
Start Time: 10:00 a.m. eastern
Phone Number: Toll free within North America: 1-800-814-4860 or Local 416-644-3416.
Conference ID#: 4551110
For those unable to attend the live call, a digital recording will be
available for replay two hours after the call by dialing 1-877-289-8525
or 416-640-1917 access code 4551110# from August 10, 2012 until August
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified
portfolio of $1.7 billion of clean renewable electric generation and
sustainable utility distribution businesses in North America. Liberty
Utilities Co., the company’s regulated distribution utility business,
provides regulated water, electricity and natural gas utility services
to more than 335,000 customers with a portfolio of 27 distribution
utility systems. Pursuant to previously announced agreements, Liberty
Utilities Co. is committed to acquiring certain regulated natural gas
and water distribution utility assets in Georgia and Arkansas
respectively, which together serve over 80,000 customers. Algonquin
Power Co., the company’s electric generation subsidiary, includes 46
renewable energy facilities and 12 thermal energy facilities
representing more than 480 MW of installed capacity. Algonquin Power &
Utilities Corp. and its operating subsidiaries deliver 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
convertible debentures are traded on the Toronto Stock Exchange under
the symbols AQN and AQN.DB.B. Visit Algonquin Power & Utilities Corp.
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
SOURCE Algonquin Power & Utilities Corp.