This news is classified in: Traditional Energy General News
Jul 1, 2016
Emera Inc. today announced that it has completed the acquisition of all outstanding shares of TECO Energy, Inc. (“TECO Energy”) for approximately US$6.5 billion (“Acquisition”).
TECO Energy is a perfect fit for Emera’s strategy due to its business and generation mix. It expands Emera’s platform into markets where there are significant growth opportunities, and is expected to increase the portion of Emera’s earnings from rate-regulated businesses to almost 85 percent of adjusted net income. With this acquisition, Emera becomes a top 20 North American regulated utility with added geographic, regulatory and business diversification.
The Acquisition is expected to be significantly accretive to Emera’s earnings per common share, with 5 percent accretion in the first full year of operations (2017)1, growing to more than 10 percent by the third full year (2019)1.
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Download free sample pages“The acquisition of TECO Energy advances a number of important strategic objectives for Emera,” said Chris Huskilson, President and CEO of Emera Inc. “We expect it to be significantly accretive, increase our regulated earnings into the high end of our target range, provide additional diversification and growth opportunities, and expand Emera into the local gas distribution business.”
As part of Emera’s commitment to the customers and communities in which it operates, operating boards will be established in Florida and New Mexico, with local business and community leaders on both boards. Tampa Electric and Peoples Gas headquarters will remain in Tampa, Florida. New Mexico Gas Co. headquarters will remain in Albuquerque, New Mexico.
“At Emera, our people are our greatest strength. Today, we welcome 3,700 new colleagues from across TECO into the Emera family. We are stronger together,” said Huskilson.
Tampa Electric serves nearly 725,000 customers in West Central Florida; Peoples Gas serves nearly 365,000 customers across Florida; and New Mexico Gas Co. serves more than 515,000 customers across New Mexico.
As a result of the closing of the Acquisition, trading of TECO Energy, Inc. common stock on the New York Stock Exchange will be suspended, and these shares will no longer be listed on The New York Stock Exchange. TECO Energy, Inc. shareholders will receive US$27.55 per share.
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