Sempra U.S. Gas & Power To Sell Parent Company Of Mobile Gas And Willmut GasPosted April 26, 2016
SAN DIEGO, April 26, 2016 /PRNewswire/ — Sempra U.S. Gas & Power, a unit of Sempra Energy (NYSE: SRE), today announced that it has signed a definitive agreement to sell EnergySouth, Inc. (EnergySouth), the parent company of Mobile Gas Service Corp. (Mobile Gas) and Willmut Gas & Oil Company (Willmut Gas), to The Laclede Group, Inc. (NYSE: LG). Cash proceeds to Sempra U.S. Gas & Power are expected to be approximately $323 million, subject to normal adjustments at close, and The Laclede Group, Inc. will assume existing debt of approximately $67 million. Sempra U.S. Gas & Power expects to record a gain on the sale upon closing.
The transaction is subject to customary regulatory approvals. At close of the transaction, EnergySouth will consist of only Mobile Gas and Willmut Gas, and will not include Bay Gas Storage Company, Mississippi Hub, LLC, Liberty Gas Storage or Southern Gas Transmission, which will be retained by Sempra U.S. Gas & Power.
“We are very proud of the strong operating and safety performance of our teams at Mobile Gas and Willmut Gas,” said Patti Wagner, president and CEO of Sempra U.S. Gas & Power. “After careful consideration of our natural gas assets, we have entered into this agreement to sell our two southeast utilities to Laclede. We believe we can productively redeploy the proceeds from the sale into long-term growth opportunities that meet our strategy. Additionally, I want to thank each employee of Mobile Gas and Willmut Gas for their continued hard work and commitment in providing safe and reliable natural gas service to residential, commercial, and industrial customers in Alabama and Mississippi.”
J.P. Morgan Securities LLC acted as financial advisor and Latham & Watkins LLP acted as legal counsel for Sempra U.S. Gas & Power.
Sempra U.S. Gas & Power acquired EnergySouth in 2008 and Willmut Gas in 2012.
Mobile Gas provides service to about 85,000 residential, commercial and industrial customers in Mobile and Baldwin counties in southwest Alabama.
Willmut Gas provides service to about 19,000 residential, commercial and industrial customers in greater Hattiesburg (which includes portions of Forrest and Lamar Counties) as well as portions of Covington, Jones, Simpson and Rankin Counties.
Sempra U.S. Gas & Power, LLC is a leading developer of renewable energy and natural gas projects. For more information, visit www.SempraUSGP.com. Sempra U.S. Gas & Power is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company with 2015 revenues of $10 billion. The Sempra Energy companies’ 17,000 employees serve more than 32 million consumers worldwide.