AGL Resources Inc.

Published : January 31st, 2013

Acquires NiSource's Retail Services Business

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Keywords :   Natural Gas | Storage |

AGL Resources Inc has added a news release to its website.

Title: AGL Resources Acquires NiSource's Retail Services Business

Date(s): 31-Jan-2013 4:30 PM

For a complete listing of our news releases, please click here

Acquisition doubles AGL Resources' retail services business;
NiSource to use proceeds to support ongoing infrastructure investments

Atlanta & Merrillville, Ind., January 31, 2013 - AGL Resources Inc. (NYSE: GAS) announced today that it has acquired certain assets from NiSource Inc.'s (NYSE: NI) retail services business, which provides warranty protection solutions and energy efficiency leasing solutions for residential and small business utility customers.

AGL Resources' acquisition of these assets, including approximately 500,000 existing customer plans, will expand its footprint to offer products such as appliance repair and line protection plans to customers in Indiana, Massachusetts, Ohio, Pennsylvania, and Kentucky.

"This acquisition almost doubles the size of our retail services business and strengthens our competitive position in this space," said John W. Somerhalder II, chairman, president and chief executive officer of AGL Resources. "Our solid track record in the retail services business, as well as our utility expertise, will allow for a successful integration of these business units," he continued.

"This transaction further enhances NiSource's strategic focus on core regulated utility and pipeline operations and provides customers with the industry-leading retail services offered by AGL Resources," NiSource president and chief executive officer Robert C. Skaggs Jr. said. "It also aligns with NiSource's commitment to build shareholder value, as we intend to use the proceeds to support strategic infrastructure investment opportunities benefitting our communities, customers and other key stakeholders."

NiSource's retail services businesses acquired by AGL Resources include:

  • Service programs in Indiana under the ESP brand;
  • Service programs under the Columbia Retail Services and Service Protection Group brands in Ohio, Pennsylvania and Kentucky; and
  • Service and appliance leasing programs in Massachusetts under the Guardian Care brand.

These brands will join AGL Resources' retail services companies that, together with the company's retail energy brands, comprise its Retail Operations segment. AGL Resources' Retail Operations segment will now market natural gas and related home services in more than 10 states.
"We are committed to providing a seamless transition for customers previously served by NiSource's retail services business and look forward to continuing to offer these customers innovative and value-driven products," said Robin Boren, president, Retail Services, AGL Resources.

AGL Resources expects the transaction to be accretive to 2013 diluted earnings per share. Proceeds from the sale of $120 million, plus working capital and less customary transaction and closing costs, will be used to support NiSource's core infrastructure investment business strategy.

Evercore Partners acted as the exclusive financial advisor to NiSource on this transaction.

Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements include statements regarding the intent, plans, belief or current expectations of NiSource, AGL Resources and their respective management. Although NiSource and AGL Resources believe that their expectations are based on reasonable assumptions, they can give no assurance that their goals will be achieved. Readers are cautioned that the forward-looking statements in this release are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those indicated by such forward-looking statements and that past performance may not be indicative of future performance. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, the matters set forth in the "Risk Factors" Section and the narrative regarding forward-looking statements in NiSource's and AGL Resources' respective Forms 10-K and subsequent filings on Forms 10-Q, many of which are risks beyond the control of NiSource and AGL Resources. Forward-looking statements contained in this press release include, without limitation, the quotes from John W. Somerhalder II, Robert C. Skaggs Jr. and Robin Boren, statements regarding the ability of AGL Resources to successfully integrate and grow the acquired assets and how such assets will affect its 2013 diluted earnings per share and NiSource's use of the proceeds. Forward-looking statements are only as of the date they are made, and NiSource and AGL Resources do not undertake to update these statements to reflect subsequent changes.

About AGL Resources
AGL Resources (NYSE: GAS) is an Atlanta-based energy services holding company with operations in natural gas distribution, retail operations, wholesale services, midstream operations and cargo shipping. As the nation's largest natural gas-only distributor based on customer count, AGL Resources serves approximately 4.5 million utility customers through its regulated distribution subsidiaries in seven states. The company also serves more than one million retail customers through its SouthStar Energy Services joint venture and Nicor National, which market natural gas and related home services. Other non-utility businesses include asset management for natural gas wholesale customers through Sequent Energy Management, ownership and operation of natural gas storage facilities, and ownership of Tropical Shipping, one of the largest containerized cargo carriers serving the Bahamas and Caribbean region. AGL Resources is a member of the S&P 500 Index. For more information, visit www.aglresources.com.

About NiSource
NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.8 million customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Information about NiSource and its subsidiaries is available via the Internet at www.nisource.com. NI-F

###

Contacts:

Financial
AGL Resources
Sarah Stashak
Director, Investor Relations
Office: 219-647-5688
Cell: 404-895-7634
sstashak@aglresources.com

NiSource
Randy Hulen
Managing Director, Investor Relations
Office: 404-584-4577
Cell: 219-644-7574
rghulen@nisource.com

Media
AGL Resources
Annette Martinez
Director, External Relations
Office: 630-388-2781
Cell: 630-918-2321
amartinez@aglresources.com

NiSource
Mike Banas
Communications Manager
Office: 219-647-5581
Cell: 312-730-7329
mbanas@nisource.com

 


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AGL Resources Inc.

CODE : AGL
ISIN : US0012041069
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AGL Resources is a producing company based in United states of america.

AGL Resources is listed in United States of America. Its market capitalisation is US$ 3.8 billions as of today (€ 3.5 billions).

Its stock quote reached its highest recent level on November 20, 2015 at US$ 99.33, and its lowest recent point on May 12, 2017 at US$ 0.03.

AGL Resources has 665 789 952 shares outstanding.

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