July 30, 2008
Sempra Energy to Acquire EnergySouth
Sempra Energy and EnergySouth have jointly announced a definitive merger agreement for Sempra Energy to acquire EnergySouth for $510 million in cash. Shareholders of EnergySouth will receive $61.50 per share for their EnergySouth stock.
According to the companies, Central to the transaction will be Sempra Energy's acquisition of the assets of EnergySouth's subsidiary, EnergySouth Midstream, including a majority ownership in two large, high-cycle underground natural gas storage facilities that, when fully developed, will have capacity of 57 billion cubic feet of natural gas.
Sempra Energy will also acquire Mobile Gas Service, an Alabama natural gas distribution utility owned by EnergySouth, as part of the transaction. Mobile Gas serves approximately 93,000 customers in southwest Alabama.
Upon completion of the acquisition, Sempra Energy's Sempra Pipelines & Storage unit will operate the EnergySouth assets.
Donald Felsinger, chairman and CEO of Sempra Energy, said: "This acquisition supports our natural gas strategy by expanding our Gulf Coast operations to serve key markets where gas demand outpaces the national average. These new assets complement our existing operations in the region and position us for future growth."