Spire has completed its previously announced acquisition of EnergySouth, the parent company of Mobile Gas and Willmut Gas, from Sempra US Gas & Power for $344m.
The company funded the acquisition using the proceeds of an equity offering in May this year and a $165m private placement of unsecured senior notes that closed on 9 September.
Spire president and CEO Suzanne Sitherwood said: “At Spire, we believe in a world where energy enriches people’s lives, and our mission is to make that idea a reality. Person by person. Neighbourhood by neighbourhood. Community by community.
“So, we’re excited to start serving the customers of Mobile Gas and Willmut Gas, and getting to know the people, employees, homeowners, business owners, families and neighbours.”
With the acquisition, Spire will now add 85,000 natural gas customers of Mobile Gas in Alabama and 19,000 Willmut Gas customers in Mississippi, and serve more than 1.7 million customers in Missouri, Alabama and Mississippi.
Spire noted that the acquisition will enable the company to grow its gas utility business and also build on its success in integrating, financing and operating its companies.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAnnounced in April this year, the acquisition will expand the company’s southern footprint that builds upon its operations and relationships in Alabama.
Furthermore, Willmut Gas will expand Spire’s reach into Mississippi.
The transaction will support the company’s long-term annual earnings per share growth target of 4% to 6%, and is expected to be neutral to net economic earnings per share next year and accretive in 2018.
