Divestiture • Utilities

UGI Utilities Acquires PG Energy

On January 27, 2006, UGI Utilities acquired utilities company PG Energy from Southern Union Co. for 580M USD

Acquisition Context
  • This is UGI Utilities’ 1st transaction in the Utilities sector.
  • This is UGI Utilities’ largest (disclosed) transaction.
  • This is UGI Utilities’ 1st transaction in the United States.
  • This is UGI Utilities’ 1st transaction in Pennsylvania.

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M&A Deal Summary

Date January 27, 2006
Target PG Energy
Sector Utilities
Buyer(s) UGI Utilities
Sellers(s) Southern Union Co.
Deal Type Divestiture
Deal Value 580M USD

Target Company

PG Energy

Wilkes-Barre, Pennsylvania, United States
PG Energy serves customers in 13 counties in northeastern and central Pennsylvania, including the cities of Scranton, Wilkes-Barre and Williamsport.
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Buyer Overview 1

Buyer

UGI Utilities

Reading, Pennsylvania, United States

Category Company
Founded 1925
Sector Utilities
Employees1,470
DESCRIPTION

UGI Utilities serves natural gas to approximately 478,000 customers in 28 Pennsylvania counties, including the cities of Allentown, Bethlehem, Easton, Harrisburg, Lancaster, Lebanon, Reading, Scranton, Wilkes-Barre and Williamsport. UGI Utilities delivers electricity to approximately 62,000 customers in two northeastern Pennsylvania counties near Wilkes-Barre.


Deal Context for Buyer #
Overall 1 of 2
Sector: Utilities 1 of 2
Type: Divestiture 1 of 2
State: Pennsylvania 1 of 2
Country: United States 1 of 2
Year: 2006 1 of 1
Size (of disclosed) 1 of 2
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-10-01 PPL Gas Utilities

Allentown,, Pennsylvania, United States

PPL Gas Utilities Corp. provides approximately 76,000 customers,serves natural gas to customers in 35 counties in eastern and central Pennsylvania and one county in Maryland.

Buy $268M

Seller Profile 1

SELLER

Southern Union Co.

Houston, Texas, United States

Category Company
Founded 1932
Sector Oil/Gas Exploration
Employees2,256
DESCRIPTION

Southern Union Co. engages in the gathering, processing, transportation, storage, and distribution of natural gas in the United States.


Deal Context for Seller #
Overall 3 of 4
Sector: Utilities 3 of 4
Type: Divestiture 3 of 4
State: Pennsylvania 1 of 1
Country: United States 3 of 4
Year: 2006 1 of 1
Size (of disclosed) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2001-09-28 Valley Propane

Providence, Rhode Island, United States

Valley Propane, Inc. is a natural gas utility based in Providence, RI, serves approximately 2,800 customers, with annual propane volume of approximately 2.0 million gallons

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-09-03 Missouri Gas Energy

Kansas City, Missouri, United States

Missouri Gas Energy, Inc. is a natural gas distribution company.

Sell $975M