New England Gas Co. being purchased by Algonquin Power affiliate
Liberty Utilities, an affiliate of Algonquin Power & Utilities Co., announced plans to purchase New England Gas Co. and is in the process of seeking approval for the purchase.
Liberty Utilities of Avondale, Ariz., and Oakville, Ontario, has announced plans to purchase New England Gas Co.
The company, an affiliate of Algonquin Power & Utilities Co., reached an agreement to purchase the utility. It has begun getting regulatory approval for the purchase, according to a spokeswoman for Algonquin Power.
“The acquisition is subject to certain approvals and conditions, including state and federal regulatory approval, and is expected to close in the second half of 2013,” a company press release stated.
Algonquin is purchasing the right to buy New England Gas Co. from The Laclede Group Inc. New England Gas is currently owned by parent company Southern Union.
New England Gas distributes natural gas to more than 50,000 customers in southeastern Massachusetts. It was formed in 2000 with the purchase of Providence Energy Corp., Valley Resources Inc. and Fall River Gas. Its headquarters is located at 45 N. Main St.
The company sold its Rhode Island operations in 2006. New England Gas now serves Fall River, North Attleboro, Plainville, Somerset, Swansea and Westport.
Algonquin Power representatives said it will pay $74 million for New England Gas.
“The New England Gas acquisition further expands APUC’s footprint in the eastern United States region and will integrate well with our existing New England Utility Operations,” said Ian Robertson, CEO of Algonquin Power. “The acquisition again demonstrates our ability to acquire attractive utility operations in the United States, particularly in supportive regulatory environments such as Massachusetts.”
The company press release stated: “New England Gas has a capable and experienced work force and APUC’s subsidiary intends to make offers of continuing employment to all current employees of the utility.”
The proposal is currently under review by the office of Attorney General Martha Coakley.
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