Canadian utility ENMAX has agreed to acquire Emera Maine, the regulated electric transmission and distribution company of Emera in the US state Maine, for about C$1.8bn ($1.3bn).
The total price for the acquisition of Emera Maine includes a purchase price of C$1.286bn ($959m) along with assumption of the company’s debt by ENMAX.
Emera Maine was founded in 2014 through the merger of Bangor Hydro Electric and Maine Public Service. The company is engaged in installation, operations and maintenance of transmission and distribution infrastructure like poles and wires, substations, and electric meters.
The company is engaged in transmitting electricity to retail customers through its 2035km long transmission lines and 9,800km long primary distribution lines. The company has a workforce of over 400 and it serves close to 1,60,000 customers across northern and eastern Maine.
For Emera, the transaction is being executed under a previously announced three-year funding plan. Under the same plan, the company signed a deal to sell its New England Gas Generation portfolio in November 2018 to The Carlyle Group for $590m. The portfolio comprises three natural gas-fired power plants with a combined capacity of around 1.1GW.
The closing of the two transactions will help Emera complete the targeted asset sale component of the funding plan. Upon completion of the deals, the Canadian electric services firm would have raised nearly C$2.1bn ($1.57bn) of capital, which will be used to bring down its corporate level debt and support its C$6.5bn ($4.85bn) three-year regulated capital program.
Emera president and CEO Scott Balfour said: “One of our priorities has been to identify a buyer for Emera Maine that has the technical skills, experience and financial strength to assure that our customers will continue to receive high quality, reliable service. ENMAX more than measures up on these essential qualities.”
For ENMAX, the transaction is a complementary opportunity, which is expected to help it expand its regulated utility business in North America.
ENMAX president and CEO Gianna Manes said: “Transmission and distribution utilities play a vital role in delivering essential electricity services to our homes, communities and businesses, and as electricity customer needs evolve, utilities like ENMAX and Emera Maine are adapting and investing to ensure customers continue to benefit from access to safe, reliable services.”
The deal, which will be subject to certain conditions and receipt of regulatory approvals, is expected to be completed by the year end.