Unitil Corporation Bolsters Presence in New England with Acquisition of Bangor Natural Gas Companyfrom Hope Utilities, Inc.

Published / Modified Jul 09 2024
CSIMarket Team / CSIMarket.com

Unitil Corporation to Acquire Bangor Natural Gas Company, Expanding Utility Services in New England

HAMPTON, N.H., July 09, 2024 - Unitil Corporation (NYSE: UTL) announced today that it has entered into an agreement to acquire Bangor Natural Gas Company (Bangor) from PHC Utilities, Inc., a subsidiary of Hope Utilities, Inc.
The acquisition will be made for $70.9 million, on a debt-free basis, subject to customary adjustments for closing working capital and transaction expenses.
With this purchase, Unitil aims to expand its utility services in New England and further enhance its business model.

Unitil Corporation's primary focus is on delivering electricity and natural gas to residential, commercial, and industrial customers.
Its operations are not limited to utility services but also include subsidiary operations such as energy efficiency services and wholesale power.
With the acquisition of Bangor, Unitil will strengthen its position in the New England region and diversify its revenue streams further.

The enterprise value of Bangor represents a multiple of approximately 1.2 times its rate base, based on its estimated rate base as of December 31, 2023.
Upon the completion 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 acquisition is subject to approval by the Maine Public Utilities Commission, as well as other conditions to closing.
Once finalized, Unitil will be able to leverage its expertise and resources to enhance the operations of Bangor Natural Gas Company and provide seamless utility services to its new customer base.

Unitil Corporation is committed to maintaining a reliable and resilient energy infrastructure while meeting the evolving energy needs of their customers in an efficient and environmentally responsible manner.
They have established a strong reputation for their dedication to customer service and their commitment to the communities they serve.

With 16.1 million shares outstanding and the current stock price at $51.8, the acquisition of Bangor Natural Gas Company represents a significant strategic move for Unitil.
It aligns with their long-term growth strategy and provides an opportunity for increased market share and enhanced profitability.

The acquisition of Bangor Natural Gas Company from Hope Utilities, Inc., will propel Unitil Corporation into a position of further strength and dominance in the New England utility market.
With their commitment to providing reliable and resilient utility services, Unitil is well-positioned for continued success in meeting the energy needs of their expanding customer base.