"Welcoming Mobile and Willmut supports our strategy to provide customer benefits and deliver long-term earnings growth and shareholder value," said Suzanne Sitherwood, president and chief executive officer. "These additions allow us to build on our significant presence in
STRATEGIC RATIONALE
- Aligns with our growth strategy. This transaction is strategically aligned with our focus on growth through acquiring and organically growing gas utilities to deliver customer benefits and long-term shareholder value. It also builds on our proven process and success in integrating, financing and operating our companies.
- Expands our southern footprint. The addition of Mobile Gas builds upon our significant footprint and working relationships in
Alabama . Willmut Gas expands our reach intoMississippi and provides further regulatory diversity, adding another state with a highly rated regulatory environment. - Adds to our earnings and cash flow. The transaction is expected to be neutral to net economic earnings per share in 2017 and accretive in 2018, and is expected to support our long-term annual earnings growth target of four percent to six percent. Further, cash flows from Mobile Gas and Willmut Gas will support investment in the business, increased shareholder value and growing dividends.
TRANSACTION DETAILS
The purchase consideration will include assumption of
CONFERENCE CALL AND WEBCAST
To access our conference call and webcast today, please dial the number below 5-10 minutes prior to the start.
Date and Time: | Today – Tuesday, April 26 |
9 a.m. CDT (10 a.m. EDT) | |
Phone Numbers: | |
International: 1-412-317-6060 |
The call will also be webcast in a listen-only format for the media and general public. The webcast can be accessed at www.TheLacledeGroup.com under the Investor Relations tab. A replay of the call will be available beginning at 11 a.m. CDT (12 p.m. EDT) today and continuing until May 26, by dialing 1-877-344-7529 (
ABOUT THE COMPANY
The Laclede Group, Inc. (NYSE: LG), will become Spire Inc. on April 28, 2016 subject to shareholder approval. The company, headquartered in
For more information about
CAUTIONARY STATEMENTS ON FORWARD-LOOKING INFORMATION
This press release may include certain statements concerning expectations for the future, including statements regarding the anticipated benefits and other aspects of the transaction described above, that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond the control of the management team of
NON-GAAP MEASURES
Net economic earnings (NEE) and NEE per share are non-GAAP measures used by management when evaluating the Company's performance. NEE excludes from net income the after-tax impacts of fair value accounting and timing adjustments associated with energy-related transactions, as well as the after-tax impacts related to acquisition, divestiture and restructuring activities, including one-time costs related to integration. A full explanation of the adjustments and a reconciliation of net income to net economic earnings are contained in the Company's SEC filings.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/laclede-to-acquire-parent-company-of-mobile-gas-and-willmut-gas-300257227.html
SOURCE The Laclede Group, Inc.