Unitil Completes Acquisition of Bangor Natural Gas
Deal News | Jan 31, 2025 | Globenewswire
Unitil Corporation has successfully completed its acquisition of Bangor Natural Gas Company from PHC Utilities, Inc., a subsidiary of Hope Utilities, Inc., with a purchase price of $70.9 million plus $0.3 million for estimated working capital. This strategic acquisition, announced initially on July 8, 2024, was concluded with all conditions met, including prerequisite approvals from the Maine Public Utilities Commission. Bangor Natural Gas Company, since its inception in 1998, has serviced approximately 8,500 customers and operated 351 miles of distribution and nine miles of transmission pipelines. With this acquisition, Unitil now serves around 207,000 customers across Maine, New Hampshire, and Massachusetts. The integration enhances Unitil’s existing natural gas distribution system in Maine, as echoed by Tom Meissner, Unitil’s CEO, who emphasized the strategic fit and commitment to delivering reliable energy services to Bangor’s customers. The company was supported in the transaction by Scotiabank and legal counsel from Dentons.
Sectors
- Energy
- Utilities
Geography
- United States – Both Unitil Corporation and Bangor Natural Gas Company operate within the United States, with operations specifically in the New England area covering Maine, New Hampshire, and Massachusetts.
- New England – The geographic focus of the acquisition is on New England, where Unitil Corporation expands its customer base and operational reach.
Industry
- Energy – The acquisition involves companies operating within the energy sector, specifically focusing on the distribution and transmission of natural gas.
- Utilities – Unitil Corporation and Bangor Natural Gas Company are both utility companies providing essential services like electricity and natural gas to customers in their respective regions.
Financials
- $70.9 million – Purchase price for the acquisition of Bangor Natural Gas Company.
- $0.3 million – Additional amount for estimated working capital in the acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Unitil Corporation | Buyer | Company | A public utility holding company providing electricity and natural gas services in New England. |
| Bangor Natural Gas Company | Target Company | Company | A natural gas distribution company serving customers in Maine since 1998. |
| PHC Utilities, Inc. | Seller | Company | A subsidiary of Hope Utilities, Inc., which owned Bangor Natural Gas Company. |
| Scotiabank | Financial Advisor | Company | Provided financial advisement to Unitil Corporation in the acquisition process. |
| Dentons | Legal Advisor | Company | Provided legal counsel to Unitil Corporation in the acquisition. |