Florida City Gas’ natural gas system is made up of about 6115.5km of distribution main and 128.7km of transmission pipe
Chesapeake Utilities to acquire Florida City Gas from NextEra Energy in $923m deal. (Credit: NextEra Energy, Inc.)
US-based energy company NextEra Energy said its subsidiary Florida Power & Light (FPL) has agreed to divest natural gas distribution company Florida City Gas (FCG) to Chesapeake Utilities in a cash deal worth $923m.
The transaction also includes $145m of intercompany debt.
NextEra Energy acquired Florida City Gas from Southern Company in 2018.
The natural gas distribution company caters to approximately 120,000 residential and commercial natural gas customers across eight counties in Florida. It includes Miami-Dade, Broward, Brevard, Palm Beach, Hendry, Martin, St. Lucie and Indian River.
Florida City Gas’ natural gas system is made up of about 6,115.5km of distribution main and 128.7km of transmission pipe.
NextEra Energy chairman, president and CEO John Ketchum said: “We are pleased that FPL has reached this agreement to sell FCG to Chesapeake Utilities.
“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.”
Following the closing of the deal, Florida City Gas will become a fully owned subsidiary of Chesapeake Utilities.
Through the acquisition of Florida City Gas, Chesapeake Utilities aims to expand its footprint in Florida, improve scale and efficiency as well as gain financial benefits.
Besides, the deal will help Chesapeake Utilities to serve over 211,000 customers through nearly 11,265.4km of natural gas distribution company pipeline.
Chesapeake Utilities chairman, president and CEO Jeff Householder said: “This acquisition will more than double our natural gas business in Florida, one of the fastest growing states in the nation.
“For several years, gas distribution customer growth in Florida has significantly exceeded national averages. Demand for natural gas continues to increase as Florida consumers seek reliable, domestic and affordable energy for their homes and businesses.”
Subject to satisfaction of the Hart-Scott-Rodino review and customary conditions, the deal is anticipated to be completed by the end of Q4 2023.