FARMINGTON HILLS, Mich., Aug 4, 2004 /PRNewswire-FirstCall via COMTEX/ -- SEMCO ENERGY,
Inc. (NYSE: SEN) today announced that the Company has signed a definitive
agreement to sell the assets of its construction services business, to
InfraSource Services, Inc. (NYSE: IFS) for approximately $20.8 million in
cash. The Company also expects to receive additional cash of approximately $4
million from the refund of certain pre-paid assets not acquired by
InfraSource. The transaction, which has been approved by the Boards of
Directors of SEMCO and InfraSource, is expected, subject to satisfaction of
certain conditions, to close by the end of the third quarter of this year.
SEMCO ENERGY's construction services business provides construction
services for the natural gas industry in the Midwest, southern and
southeastern regions of the United States. SEMCO ENERGY in November 2003
announced plans to sell the construction services business by year-end 2004 as
part of the Company's strategic plan to focus on regulated gas businesses.
George A. Schreiber, Jr., Company President and Chief Executive Officer,
said, "This transaction is an important step for the Company. It is entirely
consistent with SEMCO ENERGY's goal of focusing on the regulated gas business.
We now are better positioned to continue our efforts to strengthen the
Company's financial condition. To that end, proceeds from the transaction
will ultimately be utilized to reduce outstanding indebtedness."
The Company estimates that a loss of $5.1 million, net of taxes, will
result from the sale. This amount represents an additional loss of $2.3
million over the previously projected loss of $2.8 million that was recorded
during the first quarter of this year.
InfraSource is one of the largest specialty contractors servicing utility
transmission and distribution infrastructure in the United States.
InfraSource designs, builds and maintains transmission and distribution
networks for utilities, power producers and industrial customers.
SEMCO ENERGY, Inc. distributes natural gas to more than 392,000 customers
combined in Michigan, as SEMCO ENERGY GAS COMPANY, and in Alaska, as ENSTAR
Natural Gas Company. It owns and operates businesses involved in propane
distribution, intrastate pipelines and natural gas storage in various regions
of the United States. In addition, it provides information technology and
outsourcing services, specializing in the mid-range computer market.
The following is a "Safe-Harbor" statement under the Private Securities
Litigation Reform Act of 1995. This release contains forward-looking
statements that involve risks and uncertainties. Statements that are not
historic facts, including statements about the Company's outlook, beliefs,
plans, goals and expectations, are forward-looking statements. Factors that
may impact forward-looking statements include, but are not limited to, the
effects of weather, the economic climate, competition, commodity prices,
changing conditions in the capital markets, regulatory approval processes,
success in obtaining new business, success in defending claims against the
Company, and other risks detailed from time to time in the Company's
Securities and Exchange Commission filings.
SOURCE SEMCO ENERGY, Inc.
Analysts Contact: Thomas Connelly, Director of Investor
Relations, +1-248-702-6240, or Media Contact: Timothy Lubbers, Director of
Marketing & Corporate Communications, +1-810-966-4208, both of SEMCO ENERGY,