PORT HURON, Mich., May 15 /PRNewswire/ -- SEMCO ENERGY, Inc. (NYSE: SEN)
today announced the acquisition of KLP Construction Co., Inc. as well as
certain assets of Lake Area Utilities, Inc.
The acquisitions advance SEMCO ENERGY's goal to develop a national full-
service construction company specializing in service to the utility and
KLP Construction Co., based in East Peoria, IL, provides natural gas
pipeline and fiber optic construction services primarily for the utility
William L. Johnson, Chairman and Chief Executive Officer of SEMCO ENERGY,
Inc., announced the acquisition.
"KLP Construction brings communications infrastructure experience to SEMCO
ENERGY, plus additional construction opportunities in the upper Midwest and
expands our presence in the region, as well," he said. "This fits our stated
goal of making strategic acquisitions that will directly contribute toward
enhancing shareholder value."
KLP is expected to generate about $5 million in revenue in 2000. The
company will become part of Iowa Pipeline Associates, Inc. Iowa Pipelines
Associates, Inc. is owned by SEMCO ENERGY VENTURES, a subsidiary of SEMCO
Kevin Pogue, Vice President of KLP Construction, has accepted the position
of Vice President of the Illinois Division of Iowa Pipeline Associates.
KLP Construction serves customers in Illinois, Indiana, Wisconsin and
Missouri. The company's clients include Central Illinois Light Co., Illinois
Power, Ameren, Southern Indiana Gas and Electric Co., McLeod USA, Inc. and
The acquired assets of Lake Area Utilities, Inc. involve specialized
underground cable/fiber construction equipment. The acquisition offers Iowa
Pipeline Associates substantial growth potential through fiber/cable
construction and horizontal directional drilling projects. The company's
potential service area includes Iowa, Minnesota and Nebraska.
SEMCO ENERGY, Inc. is a diversified energy and infrastructure services
company that distributes natural gas to more than 350,000 customers in
Michigan and Alaska combined. The Company has two subsidiaries. SEMCO ENERGY
VENTURES owns 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. Aretech Information Services, Inc. is a southeastern Michigan-based
information technology company specializing in outsourcing to the mid-range
SOURCE SEMCO ENERGY, Inc.
Web site: http: //www.semcoenergy.com
CONTACT: Media, Francis R. Lieder, Jr., 810-987-2200, ext. 4188, fax, 810-989-4098, or Analysts, Edric R. Mason, Jr., 810-989-4104, fax, 810-989-4098, both of SEMCO ENERGY, Inc.