Fortis to Acquire Central Hudson Gas & Electric, Parent

CH Energy Group, Inc., the parent of Central Hudson Gas & Electric, announced this morning that it has entered into a definitive merger agreement with Fortis Inc., under which Fortis will acquire CH Energy Group for an aggregate purchase price of approximately $1.5 billion, including the assumption of approximately $500 million of debt.

Fortis is the largest investor-owned distribution utility in Canada.

The transaction is expected to close in the first quarter of 2013.

"This is the first step in our strategy to add value for Fortis shareholders by selective acquisitions within the United States of well-run, promising regulated electric and natural gas utilities," said H. Stanley Marshall, Fortis President and C.E.O.