Hampton, NH, Dec. 10, 2008 — Unitil Corp. announced that it completed the purchase of Northern Utilities Inc. (Northern) and Granite State Gas Transmission Inc. (Granite), from NiSource Inc. The purchase agreement between NiSource and Unitil was originally announced on February 19, 2008.
The purchase price was $160 million, plus $41.6 million for working capital, including approximately $33.9 million of natural gas storage inventory. There is no acquisition premium. Unitil expects to close on previously committed long term debt financing of $90 million in early December and to raise additional capital through the issuance of common stock.
All conditions of the agreement including the receipt of approvals from state regulatory authorities in Maine, New Hampshire and Massachusetts were completed successfully in November.
With the acquisition, all 81 Northern and Granite employees and 52,000 natural gas distribution customers have become part of the Unitil system. Unitil now employs 430 full time employees and provides energy distribution services to approximately 167,000 customers in 71 cities and towns in Massachusetts, Maine and New Hampshire.
RBC Capital Markets Corp. served as Unitil’s financial advisor for the transaction and Royal Bank of Canada is providing bridge financing for the deal. Dewey & LeBoeuf LLP provided legal representation to Unitil.
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