OAKVILLE, ON, April 1, 2013 /PRNewswire/ - Algonquin Power & Utilities Corp. ("APUC") (TSX: AQN) announced today that a subsidiary of APUC has closed the acquisition of assets of the regulated natural gas distribution utility serving Columbus and Gainesville, Georgia from Atmos Energy Corporation. The acquisition was originally announced in August 2012 and final regulatory approvals were received in February 2013.
Consideration for the utility asset purchase was approximately U.S. $140.7 million representing a multiple of net regulatory assets of 1.1x, plus working capital and closing adjustments.
Funding of the acquisition is within APUC's targeted 50% equity, 50% debt consolidated capital structure. A portion of the equity was funded through proceeds of $29.3 million from a previously announced private placement of 3.96 million shares issued to Emera Incorporated which closed on March 26, 2013.
The regulated natural gas distribution utilities provide natural gas service to approximately 64,000 customers in Georgia.
"Consistent with our objective of growing to more than one million customers in the US regulated utility sector by 2017, we are very pleased to have successfully closed the acquisition of this natural gas distribution utility in Georgia", commented Ian Robertson, Chief Executive Officer of APUC. "We are excited at expanding our utility footprint to the State of Georgia which we view as a supportive regulatory environment and one where we will continue to seek further opportunities for growth."
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified $3.0
billion portfolio of regulated and non-regulated utilities in North
America. The company's regulated utility business is committed to
provide water, electricity and natural gas utility services to over
465,000 customers through a nationwide portfolio of regulated
generation, transmission and distribution utility systems. The
company's non-regulated electric generation subsidiary owns or has
interests in renewable energy and thermal energy facilities
representing more than 1,100 MW of installed capacity. Algonquin Power
& Utilities Corp. delivers 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 preferred shares are traded on the
Toronto Stock Exchange under the symbols AQN and AQN.PR.A respectively.
Visit Algonquin Power and Utilities at www.AlgonquinPowerandUtilities.com and follow us on Twitter @AQN_Utilities.
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, 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 otherwise.
SOURCE Algonquin Power & Utilities Corp.
