US-based Laclede Gas has completed its previously announced acquisition of the assets of Missouri Gas Energy from Energy Transfer Partners.
The acquisition is in line with Laclede’s strategy for achieving growth through leveraging its natural gas industry expertise. It adds more than 500,000 customers in western Missouri, increasing its total customers to more than 1.1 million. It also adds 550 employees in Kansas City.
Laclede Group president and CEO Suzanne Sitherwood said that backed by Laclede Gas, Missouri Gas Energy customers will continue to receive better service.
"We’ve been working on the integration of the two companies since last year, and we are now fully ready to complete a seamless transition as we welcome Missouri Gas Energy employees and customers into the Laclede family," Sitherwood added.
The sale of Missouri Gas Energy is part of the Energy Transfer Partners plan to streamline and integrate by selling off non-core assets. It will use proceeds from the sale to pay off debt, including borrowings under its revolving credit facility.
With the help of its pipeline replacement programme, Laclede Gas will initially focus on increasing investments in the gas distribution system in western Missouri.
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By GlobalDataThe acquisition of Missouri Gas Energy is also expected to bolster the share of Laclede’s earnings generated from stable regulated utility operations, which will continue to support the dividend.
