MDU Resources Group, a diversified natural resource company, has signed an agreement to acquire Intermountain Gas Company, a wholly owned subsidiary of privately held Intermountain Industries. The acquisition is a cash-for-stock transaction.
The enterprise value of the transaction, including indebtedness, is approximately $328 million. The company expects to finance the transaction through traditional means, including the issuance of a combination of long-term debt and equity, on a basis consistent with MDU Resources’ utility capital structure.
The completion of the acquisition is subject to various regulatory reviews, as well as clearance under the Hart-Scott-Rodino Act, and satisfaction of other customary closing conditions. It is anticipated that closing will occur during the fourth quarter of 2008.
When the transaction is completed, Intermountain will become an indirect wholly owned subsidiary of MDU Resources, continuing to operate as Intermountain Gas Company.
Terry Hildestad, president and CEO of MDU Resources, said: Intermountain’s service territory and their employee expertise and culture is a great long-term strategic fit within our existing regulated operations area, which stretches from Minnesota to the Pacific Northwest.