ST. LOUIS, Sept. 12, 2016 /PRNewswire/ -- Spire Inc.
(NYSE: SR) ("Spire") today completed its acquisition of
EnergySouth, Inc., the parent company of Mobile Gas and Willmut
Gas, from Sempra U.S. Gas & Power ("Sempra"). The purchase
consideration of $344 million
included the assumption of $67
million of debt. The acquisition was funded primarily with
the proceeds of an equity offering in May
2016 and a $165 million
private placement of unsecured senior notes that closed on
September 9.
"At Spire, we believe in a world where energy enriches people's
lives, and our mission is to make that idea a reality. Person by
person. Neighborhood by neighborhood. Community by community. So,
we're excited to start serving the customers of Mobile Gas and
Willmut Gas, and getting to know the people – employees,
homeowners, business owners, families and neighbors," said
Suzanne Sitherwood, president and
CEO of Spire.
With the addition of 85,000 natural gas customers of Mobile Gas
in Alabama and 19,000 Willmut Gas
customers in Mississippi, Spire
will now serve more than 1.7 million customers in Missouri, Alabama and Mississippi.
The acquisition of Mobile Gas and Willmut Gas further delivers
on our strategic focus to grow our gas utility business and create
long-term shareholder value. This transaction also builds on our
proven process and success in integrating, financing and operating
our companies. The expansion of our southern footprint builds upon
our operations and working relationships in Alabama. Willmut Gas expands our reach into
Mississippi and provides further
regulatory diversity while adding another highly rated regulatory
environment. We expect the acquisition to be neutral to net
economic earnings per share in 2017 and accretive in 2018, and to
support our long-term annual earnings per share growth target of
four percent to six percent.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make
people's lives better. It's a simple idea, but one that's at the
heart of our company. Every day we serve 1.7 million customers
making us the fifth largest publicly traded natural gas company in
the country. We help families and business owners fuel their daily
lives through our regulated utilities - Laclede Gas, Missouri Gas
Energy, Alagasco, Mobile Gas and Willmut Gas. Our non-regulated
businesses Laclede Energy Resources and Spire Natural Gas Fueling
Solutions provide energy solutions to other natural gas users. We
are committed to transforming our business and pursuing growth by
1) growing our gas utility business through prudent infrastructure
upgrades and organic growth initiatives, 2) acquiring and
integrating gas utilities, 3) modernizing our gas supply assets,
and 4) investing in innovation. Learn more at
www.SpireEnergy.com.
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SOURCE Spire Inc.