UIL Holdings to buy three gas utilities from Iberdrola for $1.3 billion
26 May 2010
UIL Holdings Corporation yesterday eneterd into a deal to buy three gas utilities from the US unit of Spain's Iberdrola SA for $1.296 billion in cash, including the assumption of debt.
UIL expects to expand its customer base with the acquisition.
New Haven, Connecticut-based UIL Holdings, owner of the United Illuminating Company, will acquire the Southern Connecticut Gas Company (SCG), Connecticut Natural Gas Corporation (CNG) and The Berkshire Gas Company (Berkshire) from Iberdrola USA, a wholly-owned subsidiary of Iberdrola SA
With 2009 revenues of $896 million, UIL Holdings will pay $1.296 billion in cash, including debt of approximately $411 million.
With the three natural gas companies serving more than 333,000 customers in Connecticut and 36,000 in Massachusetts, the merger more than doubles UIL's customer base to approximately 694,000 customers, and creates a diversified energy company across a larger geographic area.
The three natural gas companies distribute approximately 1.6 billion cubic meters of natural gas per year to nearly 369,000 customers in the states of Connecticut and Massachusetts and have a combined workforce of approximately 800.
