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Highlights

  • Unitil to acquire Maine Natural Gas, expanding service in Greater Portland region.
  • Deal to be accretive to earnings, supporting long-term growth projections.
  • Transaction subject to Maine Public Utilities Commission approval by end of 2025.

Unitil Corporation (NYSE: UTL) has entered into a definitive agreement to acquire Maine Natural Gas Company from Avangrid Enterprises, Inc., for $86 million, debt-free, with adjustments for closing working capital and transaction expenses. The acquisition, expected to close by the end of 2025, is subject to approval by the Maine Public Utilities Commission. Once completed, Maine Natural Gas will become a wholly owned subsidiary of Unitil.

Maine Natural Gas, established in 1999, serves around 6,300 residential and commercial customers across nine communities in the Greater Portland area, including Augusta, the state’s capital. The gas system consists of approximately 230 miles of distribution mains, which provide opportunities for further customer growth. The company is estimated to have a rate base of $69 million as of December 31, 2024. Maine Natural has experienced an average customer growth rate of 4.4% annually over the past five years.

The acquisition is strategically significant for Unitil, as Maine Natural’s service areas are geographically contiguous with Unitil’s existing operations in Greater Portland, a densely populated region. This acquisition, coupled with Unitil’s recent purchase of Bangor Natural Gas Company, will enable the company to serve over 40% of Maine’s population. Unitil expects the transaction to be accretive to earnings over the long term, contributing to its growth target of 5% to 7% annual earnings per share growth.

Unitil has secured committed debt financing from Scotiabank to fund the purchase price and is being advised by Scotiabank and the law firm Dentons for this transaction. The acquisition aligns with Unitil’s goal of expanding its natural gas distribution network while continuing to provide reliable service to communities in Maine.