Emera, an international energy and services company, is to sell its wholly owned operating company, New Mexico Gas Company, to Bernhard Capital Partners, a services and infrastructure-focused private equity management firm, for an aggregate transaction value of $1.252bn.
The deal, which includes the assumption of approximately $500m of debt, is subject to customary closing adjustments.
Emera acquired NMGC as part of its acquisition of the TECO group of companies in 2016. Under Emera’s ownership, NMGC has grown and remains the largest natural gas utility in New Mexico, serving over 545,000 customers and safely managing more than 12,000 miles of transmission and distribution pipelines.
The purchase price and transaction value respectively represent approximately 23x last 12 months earnings and 1.42x rate base.
Emera is being advised by JPMorgan Securities and Davis Polk & Wardwell. Bernhard Capital is being advised by Jefferies and Kirkland & Ellis.
