PP&L Resources Acquires Penn Fuel Gas Operations
PP&L Resources Inc. announced that it acquired Penn Fuel Gas,
a gas distributor and storage company, in a stock transaction
valued at $133 million. The purchase was the latest step by the
utility company to diversify its portfolio of energy products and
services, said PP&L Resources President William F. Hecht.
Penn Fuel Gas, which is based in Oxford, PA, owns PFG Gas Inc.
and North Penn Gas Co., both gas distributors, and also operates a
propane business. In addition, North Penn Gas owns natural gas
storage facilities in Pennsylvania. The company has 100,000 gas
customers in Pennsylvania and in a small part of Maryland.
Under the deal, Penn Fuel Gas will retain its name and will
operate as a wholly owned subsidiary of PP&L Resources, parent
of PP&L. PP&L, headquartered in Allentown, PA, provides
electricity services to 1.2 million homes and businesses in the
The terms of the merger agreement called for shareholders of
Penn Fuel Gas to receive 6.968 common shares of PP&L Resources
for each common share of Penn Fuel Gas that they owned. PP&L
issued about $133 million of common stock to close the merger.
"Through the acquisition of Penn Fuel Gas, we'll have the
transportation services to supply gas. Expanding into the natural
gas business with a quality operation like Penn Fuel Gas is a
tremendous opportunity," Hecht noted.
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