PORT HURON, Mich., Feb. 4 /PRNewswire/ -- Continuing its focus on
expansion and growth in natural gas pipeline engineering and construction,
SEMCO ENERGY, Inc. (Nasdaq: SMGS) today announced the purchase of Kansas City-
based K&B Construction, Inc.
The company, which provides underground gas distribution pipeline
construction services in Kansas and Missouri, was acquired from founders
K. Kevin James and Robert H. Waters. The acquisition will be treated as a
purchase for accounting purposes. K&B Construction will operate as a
construction business unit of SEMCO ENERGY's Sub-Surface Construction Co.
James will remain with the firm as president. K&B Construction has 150
employees and approximately $9 million in annual revenues.
William L. Johnson, Chairman, President and Chief Executive Officer of
SEMCO ENERGY, Inc., said, "The acquisition of K&B Construction provides SEMCO
ENERGY an important opportunity to expand its ability to offer construction
services in the Midwest. This acquisition is a continuation of the Company's
strategy to become one of the largest providers of underground pipeline
construction services in the United States."
K&B Construction is the first 1999 acquisition for SEMCO ENERGY and the
third construction/engineering company acquired in nine months. In November,
SEMCO ENERGY acquired Oilfield Materials Consultants, Inc., a Houston, Texas-
based quality assurance/quality control company serving the natural gas, oil
transmission and exploration/production industry. In May, SEMCO ENERGY
acquired King Energy & Construction, a small Knoxville, Tennessee-based
natural gas, water and sewer infrastructure construction company.
"This is another step forward in our strategy to build a large engineering
and construction organization that will offer turnkey services to a broad
customer base," Johnson said.
SEMCO ENERGY, Inc. is an energy-focused holding-company with three primary
subsidiaries: SEMCO ENERGY VENTURES, an unregulated division which acquires
and operates businesses involved in natural gas construction, energy
engineering and propane; SEMCO ENERGY SERVICES, Inc., an unregulated division
which markets natural gas in parts of the United States and Canada; and SEMCO
ENERGY GAS COMPANY, a natural gas distribution company serving 245,000
customers in 24 counties in Michigan.
SOURCE SEMCO ENERGY, Inc.
CONTACT: Media, Francis Lieder, 810-987-2200, ext. 4186, or fax, 810-989-4098, or Analysts, Edric Mason, 810-987-2200, ext. 4104, or fax, 810-989-4098, both of SEMCO ENERGY