Algonquin Power CEO: Bermuda Electric acquisition a diversification initiative
OAKVILLE, Ont. -- Algonquin Power & Utilities Corp. (AQN.TO) has signed a deal to buy Ascendant Group Ltd., the parent company of Bermuda Electric Light Co., for US$365 million.
Algonquin chief executive Ian Robertson says the deal will be immediately accretive to the company's earnings.
"The acquisition of Bermuda Electric Light Company builds materially on our international growth program through the addition of this high-quality utility, Robertson said in a statement.
"In addition to Ascendant customer and employee benefits coming from the scale of our existing utility operations, we are confident that our demonstrated capability in renewable energy development can help Bermuda realize on its carbon reduction aspirations."
Bermuda Electric Light, which has roughly 370 employees, serves 63,000 residents and businesses in Bermuda.
Under the deal, Ascendant will maintain its headquarters in Bermuda.
Algonquin also says it is committed to retaining and developing the existing management and operations team at the company.
The deal, which is subject to shareholder and regulator approvals, is expected to close late this year.
Algonquin provides rate-regulated natural gas, water, and electricity generation, transmission and distribution utility services in the United States and Canada.
The company also has an international portfolio of long-term contracted wind, solar and hydroelectric generating facilities.