Transaction Advances North American Utility
Distribution Business Growth Strategy
Highlights:
- Acquisition marks Algonquin Power & Utilities Corp.'s
(APUC) first utility operation in Canada, and expands its regulated natural gas
distribution footprint
- Consistent with APUC's growth strategy and is expected to
provide opportunities for further expansion of its distribution
business
- Purchase price of C$331
million, expected to be immediately accretive to APUC's
earnings per share
- Transaction closing is expected in 2019, following
regulatory approvals
- Commitment to maintain local employment and the continued
safe, reliable provision of service to customers
- Following Transaction closing, APUC plans to establish the
C$5 million "Fuel for the
Future" fund, aimed at increasing the accessibility of natural
gas in New Brunswick
OAKVILLE, ON, Dec. 4, 2018 /CNW/ - Algonquin Power &
Utilities Corp. ("APUC" or "the Company") (TSX/NYSE: AQN)
today announced that its subsidiary Liberty Utilities (Canada) LP ("Liberty Utilities") has entered
into an agreement to purchase Enbridge Gas New Brunswick Limited
Partnership ("New Brunswick Gas"), a subsidiary of Enbridge Inc.
(TSX: ENB), along with its general partner for C$331 million, subject to certain customary
adjustments (the "Transaction"). New Brunswick Gas is a regulated
utility that provides natural gas to approximately 12,000 customers
in 12 communities across New
Brunswick, and operates approximately 800 km of natural gas
distribution pipeline.
"The acquisition of New Brunswick Gas builds on the growth
strategy for Liberty Utilities' East Region through the addition of
a new, high-quality utility while being immediately accretive to
APUC's earnings," said Ian
Robertson, Chief Executive Officer of APUC. "As a proudly
Canadian company, we see New Brunswick Gas as an ideal opportunity
to expand the distribution footprint into Canada, where we see tremendous potential to
invest in growing the customer base. We look forward to welcoming
the New Brunswick Gas team to the APUC family, and are committed to
supporting the dedicated teams as they continue to deliver the same
great services across the province."
Transaction Highlights
Financing expected to be consistent with APUC'S investment
grade capital structure - The financing plan for the
Transaction is expected to be consistent with APUC's current credit
profile and strong investment grade credit ratings. Closing of the
Transaction is expected to occur within the first half of 2019 and
remains subject to customary closing conditions, including the
receipt of regulatory and government approvals.
Continuing Commitment to Communities, Customers and
Employees – The Transaction is not expected to
affect New Brunswick Gas customers or the rates paid for service.
APUC intends to maintain local employment and the existing local
operating and management structure. Liberty Utilities plans to
establish the "Fuel for the Future" fund which,
subject to conditions to be announced, could offer rebates of up to
100 percent of the cost of converting new customers in order to
take advantage of the economic, clean and convenient natural gas in
New Brunswick. Liberty Utilities plans to work closely with
New Brunswick Gas towards a successful and seamless transition,
under which customers will continue to receive the same
uninterrupted, safe and reliable service to which they have been
accustomed.
Algonquin Power & Utilities Corp. to Host Analyst
and Investor Day Events
On December 4th and
December 5th, APUC will be
hosting its annual Analyst and Investor Day events in Toronto and New
York, respectively. During these events, management plans to
provide further information on its current operations, business
developments and outlook for future growth and recent capital
investments. Institutional investors and research analysts
interested in attending may contact APUC's Investor Relations team
at investorrelations@apucorp.com for further information.
About Algonquin Power & Utilities Corp.
APUC is a diversified generation, transmission and distribution
utility with approximately US$9
billion of total assets. Through its two business groups, APUC
provides rate regulated natural gas, water, and electricity
generation, transmission, and distribution utility services to over
766,000 connections, and is committed to being a global leader in
the generation of clean energy through its ownership of, or
interest in, long term contracted wind, solar and hydroelectric
generating facilities representing approximately 1.7 GW of
installed capacity. With a team of over 2,300 talented employees,
APUC delivers continuing growth through an expanding pipeline of
renewable energy development projects, organic growth within its
rate regulated generation, distribution and transmission
businesses, and the pursuit of accretive acquisitions. APUC's
common shares, Series A preferred shares and Series D preferred
shares are listed on the Toronto Stock Exchange under the symbols
AQN, AQN.PR.A, and AQN.PR.D, respectively. APUC's common shares and
Series A subordinated notes are also listed on the New York Stock
Exchange under the symbols AQN and AQNA.
Visit APUC 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 the
completion of the proposed Transaction, the anticipated benefits of
the proposed Transaction and APUC's 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.
View original
content:http://www.prnewswire.com/news-releases/algonquin-power--utilities-corp-announces-agreement-to-acquire-enbridge-gas-new-brunswick-300759543.html
SOURCE Algonquin Power & Utilities Corp.