UGI Utilities Acquires PPL’s Natural Gas Distribution and Propane Businesses
UGI Utilities, a wholly owned subsidiary of UGI Corporation, has acquired PPL Gas Utilities Corporation and Penn Fuel Propane for about $268 million in cash plus working capital.
In July 2007, PPL announced its intention to sell its gas distribution and propane companies and signed a definitive sale agreement with UGI in March 2008. The two companies represented about 1% of PPL’s overall earnings from ongoing operations in 2007.
The gas utility serves about 76,000 natural gas distribution customers in 35 counties throughout Pennsylvania and a small area of Maryland. It operates about 3,800 miles of pipeline and owns underground gas storage capacity in three separate reservoirs in north-central Pennsylvania.
The propane subsidiary buys propane on a wholesale basis and stores, delivers and sells it to about 33,000 industrial, commercial and residential customers in Pennsylvania, Delaware, Maryland and West Virginia.