British power and gas distributor National Grid Plc (LON:NG) announced today it had wrapped up the $285m (€226.8m) sale of its New Hampshire electric and gas distribution units to a subsidiary of Canada’s Algonquin Power & Utilities Corp (TSE:AQN), or APUC.
The deal was signed back in December 2010 and got the final clearance by the New Hampshire Public Utilities Commission at the end of May 2012. Under its terms, National Grid sold Granite State Electric Co and Energy North Natural Gas Inc to APUC’s regulated distribution utility Liberty Energy Utilities (New Hampshire) Corp. The completion occurred yesterday.
The vendor said it had received gross proceeds of $309m, including working capital of $24m. The purchase price represents a multiple of 11.9 times the business’ EBITDA for the fiscal year to 31 March 2010. National Grid noted it plans to use the money for general funding purposes.
The British company announced in May 2010 it was considering its alternatives for an exit of both of its New Hampshire-based gas and electricity distribution businesses. National Grid was then approached by various suitors but decided that Algonquin’s proposal was the most attractive outcome for its stockholders.