Black Hills Corp. to acquire SourceGas
Black Hills Corp. out of Rapid City, S.D., announced Sunday that it will acquire SourceGas Holdings LLC, a move that will affect natural gas customers in Glenwood Springs and several other Colorado communities.
Subsidiary Black Hills Energy will acquire SourceGas from investment funds managed by Alinda Capital Partners and GE Energy Unit, according to a news release from Black Hills.
SourceGas primarily operates four regulated natural gas utilities serving approximately 93,000 customers in 73 communities in Colorado, including Glenwood Springs, Montrose, Edwards and Frederick, as well as 332,000 customers in Arkansas, Nebraska and Wyoming.
Black Hills already provides natural gas and electric service to 171,000 customers in Colorado.
“Adding SourceGas to our existing gas and electric utilities is a great fit for the customers and communities we serve,” David R. Emery, chairman, president and chief executive officer of Black Hills Corp., said in the release.
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“Black Hills will leverage the strengths of each organization to deliver highly valued service to customers,” he said. “We are a committed partner in strengthening our communities through economic development, charitable contributions, sponsorships and employee involvement. Black Hills employees — like the employees of SourceGas — live and work in predominantly rural areas with shared values and culture.”
The acquisition is expected to create a stronger utility company with enhanced operational expertise and financial resources to meet the region’s future energy needs, according to the release.
The combined entity will serve more than 1.2 million electric and natural gas utility customers in 790 communities across eight states.
Black Hills Corp. currently operates 10 utilities in seven states, including seven local natural gas distribution utilities.
The transaction, which is expected to close in the first half of 2016, is subject to regulatory approvals from the Colorado Public Utilities Commission, Arkansas Public Service Commission, Nebraska Public Service Commission and Wyoming Public Service Commission and other customary approvals and closing conditions.
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