NextEra Energy, Inc. announced its Florida Power & Light Company (FPL) subsidiary has entered into a definitive agreement to sell Florida City Gas (FCG) to Chesapeake Utilities Corporation (Chesapeake Utilities) for $923 million in cash.
“We are pleased that FPL has reached this agreement to sell FCG to Chesapeake Utilities,” said John Ketchum, chairman, president and chief executive officer, NextEra Energy. “This transaction allows us to continue our strategy of redeploying capital into our core businesses. I want to thank the FCG team for their hard work and accomplishments and am confident they will continue to be successful in the years to come.”
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The transaction value of $923 million, including $145 million of intercompany debt, is expected to be accretive to NextEra Energy earnings immediately upon closing. The impact of the gain on sale at the time of closing will be excluded from adjusted earnings. Expected to be completed over the next several months, the sale is conditioned upon satisfaction of the Hart-Scott-Rodino review and customary closing conditions.
FCG serves about 120,000 residential and commercial natural gas customers across eight counties in Florida, including Miami-Dade, Broward, Brevard, Palm Beach, Hendry, Martin, St. Lucie and Indian River. Its natural gas system includes approximately 3,800 miles of distribution main and 80 miles of transmission pipe. Since joining NextEra Energy, FCG has been honored three times as a Most Trusted Utility Brand and twice as a Customer Champion, both recognitions from Escalent.
SOURCE : PRNewswire