AGL Resources : AGL Resources Acquires NiSource's Retail Services Business
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,"
"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
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
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
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
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
Director, Investor Relations
Managing Director, Investor Relations
Director, External Relations
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: AGL Resources via Thomson Reuters ONE
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