Southern Co. To Sell Elizabethtown Gas, Elkton Gas To South Jersey Industries

(RTTNews) - Southern Co. (SO) and its subsidiary Southern Company Gas said that Pivotal Utility Holdings, Inc., a subsidiary of Southern Company Gas, has entered into agreements to sell the assets of its utility operating divisions Elizabethtown Gas and Elkton Gas to South Jersey Industries Inc. (SJI) in an all-cash transaction with an enterprise value of about $1.7 billion.

Southern Co. noted that South Jersey Industries will continue to provide service at New Jersey Board of Public Utilities or NJBPU and Maryland Public Service Commission or MPSC approved tariff rates.

South Jersey Industries also will maintain commitments to Elizabethtown Gas and Elkton Gas employees, including honoring all collective bargaining agreements in place at the time of close and pension benefits.

South Jersey Industries is an energy services holding company comprised of a natural gas utility, South Jersey Gas, which serves approximately 381,000 residential, commercial and industrial customers in the seven southernmost counties of New Jersey.

"This transaction, which we anticipate completing by third quarter 2018, will strengthen the balance sheets of Southern Company Gas and Southern Company by reducing existing financing requirements. In addition to maximizing value for Southern Company shareholders, the transaction is beneficial to our company and aligns with our overall business strategy to drive growth and prosperity," Thomas Fanning, chairman, president and CEO of Southern Company, said.

Goldman, Sachs & Co. LLC is serving as exclusive financial advisor and Baker Botts LLP is serving as legal counsel to Southern Co.