Unitil to Purchase Bangor Natural Gas Company from Hope Utilities For $70.9M
Unitil Corporation (NYSE:UTL) (unitil.com) today announced that Unitil has agreed to purchase Bangor Natural Gas Company ("Bangor") from PHC Utilities, Inc., a subsidiary of Hope Utilities, Inc., for $70.9 million on a debt-free basis, subject to customary adjustments for closing working capital and transaction expenses. Bangor's enterprise value represents a multiple of approximately 1.2 times its rate base (based on its estimated rate base as of December 31, 2023). Upon the closing of the transaction, which is expected to occur by the end of the first quarter of 2025, Bangor will become a wholly owned subsidiary of Unitil. The transaction is subject to approval by the Maine Public Utilities Commission as well as other conditions to closing.
"Bangor Natural Gas Company is a great complement to our current natural gas distribution operations in Maine," said Thomas P. Meissner, Jr., Unitil's Chairman and Chief Executive Officer. "Bangor brings a strong management team that is committed to providing safe, clean, reliable, and affordable energy to customers. We share their dedication to serving communities in Maine by providing responsive, high-quality service through locally-managed operations."
Bangor Natural Gas Company, which commenced operations in 1998, is a natural gas distribution company serving approximately 8,500 customers. Bangor owns and operates approximately 351 miles of distribution pipelines and nine miles of transmission pipelines.
Unitil plans to finance this transaction with a balanced mix of equity and debt to maintain its strong balance sheet, and has obtained committed debt financing from Scotiabank to fund the purchase price.