Water Utility To Acquire Utilities Offering Natural Gas Choice
October 24,2018
Aqua America Inc., regulated water and wastewater utility, announced that it will acquire Peoples in an all-cash transaction that reflects an enterprise value of $4.275 billion, which includes the assumption of approximately $1.3 billion of debt.
Peoples consists of Peoples Natural Gas Company LLC (Peoples and Equitable divisions) and Peoples Gas Company LLC (formerly T.W. Phillips Gas & Oil), in Pennsylvania, and Delta Natural Gas Company Inc. in West Virginia and Kentucky
The three Peoples LDCs offer retail natural gas choice
Aqua will acquire Peoples from infrastructure funds managed by Sausalito, California-based SteelRiver Infrastructure Partners.
Morgan O’Brien, current Peoples CEO, will continue to lead the natural gas company
Post-transaction close, the combined businesses will be led by Aqua Chairman and CEO Christopher Franklin. Morgan O’Brien will continue to lead the natural gas company
The company’s corporate headquarters will be in Bryn Mawr, Pennsylvania, and Aqua’s water and wastewater operations will remain headquartered in Bryn Mawr. Peoples, the natural gas operating subsidiary, and its employees will remain headquartered in Pittsburgh and other operating locations will remain unchanged.
The transaction is subject to regulatory approvals, including approval by the public utility commissions in Pennsylvania, Kentucky and West Virginia. Assuming fulfillment of those conditions, closing of the transaction is expected in mid-2019.