PP&ampL Resources Inc. announced that it acquired Penn Fuel Gas,a gas distributor and storage company, in a stock transactionvalued at $133 million. The purchase was the latest step by theutility company to diversify its portfolio of energy products andservices, said PP&ampL 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 apropane business. In addition, North Penn Gas owns natural gasstorage facilities in Pennsylvania. The company has 100,000 gascustomers in Pennsylvania and in a small part of Maryland.

Under the deal, Penn Fuel Gas will retain its name and willoperate as a wholly owned subsidiary of PP&ampL Resources, parentof PP&ampL. PP&ampL, headquartered in Allentown, PA, provideselectricity services to 1.2 million homes and businesses in thestate.

The terms of the merger agreement called for shareholders ofPenn Fuel Gas to receive 6.968 common shares of PP&ampL Resourcesfor each common share of Penn Fuel Gas that they owned. PP&ampLissued about $133 million of common stock to close the merger.

“Through the acquisition of Penn Fuel Gas, we’ll have thetransportation services to supply gas. Expanding into the naturalgas business with a quality operation like Penn Fuel Gas is atremendous opportunity,” Hecht noted.

Susan Parker

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