PORT HURON, Mich., Nov. 2 /PRNewswire/ -- SEMCO ENERGY, Inc.
(Nasdaq: SMGS) today announced it has finalized the acquisition of ENSTAR
Natural Gas Company and Alaska Pipeline Company (together known as ENSTAR).
The Anchorage-based natural gas distribution and natural gas transmission
companies were formerly owned by Ocean Energy, Inc. (NYSE: OEI).
William L. Johnson, Chairman and Chief Executive Officer of SEMCO ENERGY,
Inc., made the announcement.
"I am pleased to add ENSTAR as a division of SEMCO ENERGY," Johnson said.
"ENSTAR is an excellent addition to our natural gas business. This
acquisition propels SEMCO ENERGY forward on the path we have outlined to
significantly grow the company."
SEMCO ENERGY, Inc. also owns SEMCO ENERGY GAS COMPANY, a distribution
company with more than 250,000 customers in Michigan's Lower and Upper
SEMCO ENERGY, Inc. in July agreed to acquire ENSTAR for approximately $290
million cash, which includes the purchase of approximately $60 million of
ENSTAR debt held by Houston, Texas-based Ocean Energy. The purchase will be
initially financed through a short-term credit facility from a syndicate of
banks until permanent financing of equity and long-term debt is arranged.
With the completion of the acquisition, SEMCO ENERGY will be reorganized so
that ENSTAR and SEMCO ENERGY GAS COMPANY become divisions of SEMCO ENERGY.
The ENSTAR acquisition will be accounted for using the purchase method of
The acquisition was approved by the Regulatory Commission of Alaska and
the Federal Trade Commission.
SEMCO ENERGY was represented in the transaction by Banc America
Securities, who served as financial advisor. Bank of America provided bridge
In addition to its natural gas divisions, SEMCO ENERGY owns SEMCO ENERGY
VENTURES. This unregulated division acquires and operates businesses involved
in gas engineering and quality assurance services, pipeline construction
services, propane distribution, intrastate pipelines and natural gas storage
in various regions of the United States.
SOURCE SEMCO ENERGY, Inc.
CONTACT: Media Contact: Francis R. Lieder, Jr. of SEMCO ENERGY, Inc., 810-987-2200, Ext. 4186, or Analysts Contact, Edric R. Mason, Jr., 810-989- 4104, or Fax, 810-989-4098