FARMINGTON HILLS, Mich., Sept. 3 /PRNewswire-FirstCall/ -- SEMCO ENERGY,
Inc. (NYSE: SEN) today announced that the Company has finalized the sale of
the assets of its construction services business to InfraSource Services, Inc.
(NYSE: IFS) for $21.3 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.
SEMCO ENERGY announced on August 4, 2004, that it had reached a definitive
agreement to sell the construction services business, which operates in the
Midwest and Southeastern United States, to InfraSource Services. The
transaction was expected to be completed by the close of the third quarter of
In November 2003, SEMCO ENERGY announced plans to sell the construction
services business by the end of 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, "I am pleased that we have completed the divestiture of the construction
services business well within our originally announced time frame. We now can
focus our energy on enhancing the value of our natural gas distribution
business, which has consistently performed well and provided stable earnings
for the Company."
The Company recorded a loss of $5.1 million, net of taxes, from the sale.
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.
/CONTACT: 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,
/Web site: http://www.semcoenergy.com /
CO: SEMCO ENERGY, Inc.; InfraSource Services, Inc.
IN: OIL UTI CST
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0476 09/03/2004 16:15 EDT http://www.prnewswire.com