Energy and construction company MDU Resources Group Inc. said Tuesday it will buy Intermountain Gas Co., a subsidiary of privately owned Intermountain Industries Inc.
The company said the deal was a cash-for-stock transaction worth about $328 million including debt.
MDU said it expects to finance the deal through "traditional means," including the issuance of a combination of long-term debt and equity.
MDU said the acquisition was consistent with its plan to grow its regulated utility.
The company said it expects the deal to close during the fourth quarter of 2008, pending regulatory approval and other closing conditions.
When the deal is completed, Intermountain will become a wholly owned subsidiary of MDU and will continue to operate as Intermountain Gas Co.
Intermountain Gas serves 300,000 customers in Idaho.
MDU shares rose 4 cents to close at $34.90.
Terms & Conditions
RSS Headlines
Fool UK