October 6, 2008
Sempra Energy Acquires EnergySouth for $510 Million
Sempra Energy has acquired EnergySouth for $510 million in cash. The acquisition was accomplished via a merger of a Sempra Energy subsidiary and EnergySouth.
Sempra Energy's Sempra pipelines and storage unit will operate the EnergySouth business as part of Sempra pipelines and storage's existing operations.The acquisition gives Sempra Energy 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 serving the fastest-growing natural gas markets in the US, said Sempra Energy.
As part of the transaction, Sempra Energy also acquired Mobile Gas Service, an Alabama natural gas distribution utility owned by EnergySouth. Mobile Gas serves approximately 93,000 customers in southwest Alabama. James Fine has been named president of Mobile Gas. He previously served as the company's vice president of operations.
Donald Felsinger, chairman and CEO of Sempra Energy, said: "We are pleased with the closing of this transaction and the positive support from shareholders and regulators. The Gulf Coast is of growing importance as a critical energy hub for North America and these new assets allow us to quickly expand our natural gas infrastructure business in the region."