AltaGas Ltd. of Calgary agreed to acquire Semco Holding Corp. from Continental Energy Systems LLC for $1.135 billion, including $355 million in assumed debt. The transaction includes natural gas distribution businesses in Alaska and Michigan.
The acquisition, expected to close during the third quarter, is subject to regulatory approval, including approvals from the Michigan Public Service Commission and the Regulatory Commission of Alaska.
Semco Energy Inc. indirectly holds a regulated gas distribution utility in Alaska through Enstar Natural Gas Co. and an interest in Cook Inlet Natural Gas Storage Alaska LLC, a regulated gas storage utility under construction .
In addition, Semco indirectly holds a regulated gas distribution utility and an interest in an unregulated gas storage facility in Michigan.
David Cornhill, AltaGas chairman and chief executive officer, said, "This acquisition by AltaGas demonstrates the long-term value and growth potential of these operations and is a vote of confidence in both Michigan and Alaska as good places to do business."
AltaGas' regulated utilities serving Alberta, Nova Scotia, and British Columbia.
Semco Holding, based in Port Huron, Mich., is the sole shareholder of Semco Energy Inc. a privately held regulated public utility company.
A wholly owned subsidiary of Continental Energy Systems of Troy, Mich., Semco Holding owns interests in gas utilities serving Michigan, Alaska, and New Mexico. Continental Energy's investment in New Mexico Gas Co. is not part of the AltaGas acquisition.