UIL Holdings Corporation (UIL) will acquire three natural gas firms owned by Iberdrola US for $1.3bn.
The firms to be bought include The Southern Connecticut Gas Company, Connecticut Natural Gas Corporation and The Berkshire Gas Company.
The acquisition, which will create a diversified energy delivery company with 694,000 utility customers, is expected to be concluded in the first quarter of 2011.
The three natural gas local distribution companies (LDCs) serve over 333,000 natural gas customers in Connecticut and 36,000 in Massachusetts.
UIL’s existing technical infrastructure and associated processes are well-positioned to support the planned addition of the gas LDCs and it intends to issue debt and equity to fund the cash portion of the acquisition.
