Laclede To Buy Alabama’s Largest Natural Gas Utility

The Laclede Group's headquarters in downtown St. Louis | Photo courtesy of Creative Commons
The Laclede Group has its headquarters in downtown St. Louis. | Courtesy of Creative Commons

Laclede Group has agreed to buy Energen Corp.’s Alabama Gas Corp. subsidiary for $1.34 billion in cash, continuing its strategy of growth through acquisitions. Laclede also will assume about $320 million of Alabama Gas Corp.’s (Alagasco’s) debt.

Laclede said it anticipates $260 million in tax benefits resulting from the deal, which it expects to close this year, and for Alagasco to add to net earnings in fiscal 2015. Laclede is financing the deal with a $1.35 billion bridge loan from Credit Suisse and Wells Fargo Bank, according to the company.

Alagasco is Alabama’s largest natural gas utility, serving more than 422,000 customers

Read more from the St. Louis Business Journal


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