UIL acquired the three companies from a subsidiary of Iberdrola for $1.29bn, less net debt of approximately $331.1m and a preliminary working capital adjustment of approximately $47m, resulting in cash consideration at closing of approximately $917.9m to Iberdrola.
While the aggregate purchase price was unchanged, the cash consideration paid at closing was greater than the prior estimate of $885m due to lower actual levels of net debt assumed, partially offset by the preliminary working capital adjustment.
The Connecticut Department of Public Utility Control approved the change of control of the Connecticut gas companies to UIL on 10 November 2010, and the Massachusetts Department of Public Utilities determined its approval was not required with respect to the acquisition of Berkshire.
Along with UIL’s existing electric utility, The United Illuminating Company, the acquisition of the three natural gas companies creates an energy delivery company that will now serve a total of 690,000 utility customers in 66 communities across two states.
