Bernhard Capital Partners (BCP) is acquiring the largest natural gas utility in New Mexico, US, from owner Emera for $1.25bn (€1.14bn).
Energy and services firm Emera said it has agreed to sell New Mexico Gas Company (NMGC) to BCP at the price which includes the assumption of approximately $500m in debt.
TSX-listed Emera said it expects the net proceeds of around $750m to be used to repay holding company debt and support its investment opportunities in its regulated utility businesses.
Emera acquired NMGC in 2016 as part of its TECO purchase. Since then, NMGC has grown into New Mexico’s largest natural gas utility, serving more than 545,000 customers via a network of over 12,000 miles of pipelines.
Scott Balfour, president and CEO of Emera, said: “This transaction strengthens Emera’s balance sheet, supports our ambitious capital plan and reinforces our strategic decision to optimise our portfolio and reallocate capital to our highest growth markets to drive long-term value for our shareholders.
“New Mexico Gas is a strong regulated utility with a customer-focused team. We’re proud of the work we have done together over the past eight years to drive customer growth and enable nearly $800m in strategic capital investments to expand and maintain a safe, reliable system that will serve New Mexicans for decades to come.”
Jeff Jenkins, founder and partner at Bernhard Capital Partners, said: “This investment directly aligns with Bernhard Capital’s strategy to invest in infrastructure assets and utilities that are critical to building more resilient communities.
“We value the strong history of New Mexico Gas Company and are committed to retaining the invaluable institutional knowledge of its employees. The leadership team and all employees will remain in place after closing, and we anticipate creating approximately 70 new local jobs.”
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