CH Energy Group, Inc. and Star Gas Partners Close on Sale of Griffith Energy Services, Inc.
CH Energy Group, Inc. (CH Energy Group), indirect wholly owned subsidiary of Fortis Inc. (TSX:FTS), announced it has completed the sale of subsidiary Griffith Energy Services, Inc. (Griffith) to Star Gas Partners, L.P. (Star Gas) (NYSE:SGU).
Under the terms of the agreement, Star Gas acquired the equity of Griffith for US$69.9 million plus working capital.
Star Gas is the nation's largest retail distributor of home heating oil, based upon sales volume, operating throughout the Northeast and Mid-Atlantic, with sales of more than US$1.7 billion in fiscal year 2013.
Griffith is a leading energy services provider in the Mid-Atlantic region, distributing heating oil, motor fuels and propane and providing HVAC services to both residential and commercial customers. Griffith has operations in Virginia, West Virginia, Delaware, District of Columbia, Maryland, and Pennsylvania.
"We wish Griffith future success as a part of the Star Gas organization," said Christopher Capone, Chief Financial Officer of CH Energy Group.
CH Energy Group exited this business sector to focus on its core utility operations in New York. Lazard Middle Markets served as financial advisor, and Thompson Hine as legal advisor.
Fortis Inc. is the largest investor-owned gas and electric distribution utility in Canada. Its regulated utilities account for 90 per cent of total assets and serve more than 2.4 million customers across Canada and in New York State and the Caribbean. Fortis owns non-regulated hydroelectric generation assets in Canada, Belize and Upstate New York. The Corporation's non-utility investments are comprised of hotels and commercial real estate in Canada and petroleum supply operations in the Mid-Atlantic Region of the United States.
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