Black Hills closes $940M buyout of Aquila plants

Black Hills Corp. said Monday is has completed its $940 million cash buyout of five Aquila Inc. utilities in Colorado, Iowa, Kansas and Nebraska.

The transaction, which is subject to final closing costs, was financed through a $380 million borrowing on the company's $1 billion acquisition facility and cash proceeds from the sale of seven independent power production facilities earlier this month.

Black Hills of Rapid City, S.D., acquired an electric utility in Colorado, and natural gas utilities in Colorado, Iowa, Kansas and Nebraska.

"With this transaction, the company is building a platform for growth based on a foundation of stable cash flow, more predictable earnings and increased efficiencies," David R. Emery, chairman, president and chief executive of Black Hills, said in a release.

The company has added 1,050 workers at the current Aquila locations and has hired 200 employees to help handle the influx of about 600,000 new customers. The additions bring its total work force to about 2,200 employees.

The newly acquired facilities will operate under the name "Black Hills Energy."

Black Hill shares rose 33 cents to $32.26 in afternoon trading. Aquila shares added 3 cents to $3.97.