Integrys Energy Services Acquires Another Retail Supply Business

AGL Resources Inc. announced this morning that it has closed on the sale of Compass Energy Services, Inc. and its wholly-owned subsidiary, a non-regulated retail natural gas business supplying commercial and industrial customers, to a wholly owned subsidiary of Integrys Energy Services, Inc.

Compass Energy Services supplies commercial and industrial customers primarily in the Mid Atlantic and Ohio regions.

As exclusively reported by EnergyChoiceMatters.com yesterday, Integrys Energy Services also recently entered into an agreement to assume responsibility for serving Pepco Energy Services' remaining natural gas customers in Maryland.

In a 10-Q, Integrys Energy Group said that the Compass Energy Services transaction, "will expand Integrys Energy Services' retail natural gas presence in these markets and provide a solid foundation for future growth in these regions."

"This acquisition is not material to us," Integrys Energy Group said in the 10-Q

AGL Resources acquired Compass in October 2007 and has operated the business as part of its wholesale services segment.

Under the sale of Compass Energy Services to Integrys, AGL Resources received an initial cash payment of $12 million plus estimated working capital at closing.

Under the terms of the purchase and sale agreement, AGL Resources will be eligible to receive additional cash consideration of up to $8 million (but no less than $3 million), based upon the financial performance of Compass over the next five years.

AGL Resources expects to report a pre-tax gain on the sale of Compass of approximately $9 million to $11 million during the second quarter of 2013, with an estimated diluted earnings per share impact of $0.05 to $0.06.