AltaGas Ltd. said that it has entered into a definitive agreement with Continental Energy Systems LLC to acquire SEMCO Holding Corporation for US$1.135 billion, including approximately US$355 million in assumed debt.
SEMCO is the sole shareholder of SEMCO Energy, Inc. a privately held regulated public utility company headquartered in Port Huron, Michigan. SEMCO indirectly holds a regulated natural gas distribution utility in Alaska through ENSTAR Natural Gas Company and an interest in a regulated natural gas storage utility in Alaska under construction called Cook Inlet Natural Gas Storage Alaska. SEMCO also indirectly holds a regulated natural gas distribution utility and an interest in an unregulated natural gas storage facility in Michigan.
“AltaGas’ vision is to be a leading North American energy infrastructure company. This acquisition continues the successful execution of our growth strategy ,” said David Cornhill, Chairman and CEO of AltaGas. “ These assets come with strong management teams and employees who have a strong track record of delivering safe and reliable service to their customers and have excellent relationships with the communities in which they operate. We look forward to welcoming the SEMCO management teams and employees to AltaGas. We have a long history of operating natural gas utilities, and we will continue to deliver safe and reliable service to our customers. This acquisition establishes a significant foothold in the U.S. in areas with strong growth potential that are near existing AltaGas assets and operations. We are focused on creating shareholder value for the long term and this transaction adds stable, regulated, long-life cash flow ,” said Mr. Cornhill.
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LNG World News Staff, February 2, 2012; Image: AltaGas