Under the terms of the agreement, shareholders of Empire will receive $34.00 per common share in cash.
The transaction is subject to customary closing conditions, including the approval of Empire’s common shareholders, and the receipt of certain state and federal regulatory and government approvals.
Upon completion of the deal scheduled in the first quarter of 2017, Empire will become a subsidiary of Algonquin’s Liberty Utilities.
The acquisition comes in line with Algonquin’s financial objectives and is expected to contribute to the firm’s 10% annual dividend growth rate target.
Empire serves approximately 218,000 customers in Missouri, Kansas, Oklahoma, and Arkansas, US.
Algonquin Power & Utilities said that the acquisition is a part of its effort to strengthen and diversify existing businesses and strategically expands regulated utility footprint in the mid-west US.
Algonquin Power & Utilities CEO Ian Robertson said: "The addition of this large, well run utility to the Algonquin family will support our 10% annual dividend growth target through significant accretion to shareholder cash flows and earnings."
The acquisition is also expected to further diversify Liberty Utilities’ electric, gas, and water utility operations.
Empire president and CEO Brad Beecher said: "Over the years, Empire has focused its energies on its core values of providing safe, reliable and economical service to its customers, a fair return to its shareholders, and a safe and positive work experience for its employees."
Image: Empire District Electric Company serves approximately 218,000 customers in the US. Photo: courtesy of mrsiraphol/ FreeDigitalPhotos.net.
