Southern Company Gas to Sell Elizabethtown Gas and Elkton Gas to South Jersey Industries in $1.7 Billion Deal

A subsidiary of Southern Company Gas, Pivotal Utility Holdings, Inc., has entered into discussions to sell the assets of its utility operating divisions Elizabethtown Gas and Elkton Gas to South Jersey Industries with an enterprise value of about US$1.7 billion. 

The transaction will involve, among other things, approval by the NJBPU and MPSC, the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and certain limited approvals by the Federal Energy Regulatory Commission and the Federal Communications Commission.

The transaction, is designed to ensure that Elizabethtown Gas and Elkton Gas will continue their customer-focused business model and strong commitment to safety, reliability, excellent customer service and giving back to the communities where they are privileged to serve.

Founded in1855, Elizabethtown Gas provides abundant and affordable natural gas efficiently to more than 286,000 residential, business and industrial natural gas customers in New Jersey. The company converts to natural gas, which is delivered to us through a network of interstate pipelines.

With roots in 1863, Elkton Gas serves approximately 6,000 residential and business customers in the greater Elkton area, on Maryland's eastern shore. The company provides natural gas services to residential and commercial customers. Its services include maintaining gas pipeline infrastructure; responding to and repairing gas leaks; selling natural gas service to residential, commercial, and industrial customers; among others.

For the transaction, Goldman, Sachs & Co. LLC will serve as exclusive financial advisor and Baker Botts LLP as legal counsel to Southern Company. 

Thomas A. Fanning, chairman, president and CEO of Southern Company, said:

"This transaction, which we anticipate completing by third quarter 2018, will strengthen the balance sheets of Southern Company Gas and Southern Company by reducing existing financing requirements"