Taking another step in its previously announced cash flow improvement plan, Austin, TX-based Southern Union Co. announced that it has sold all of the assets of its Atlantic Utilities division to Florida Public Utilities Co. in an all-cash transaction.

“We’re pleased that our strategy to divest our Florida operations coincides with Florida Public Utilities’ expansion,” stated Thomas F. Karam, president of Southern Union. “This latest sale brings us closer to meeting the goal of our ongoing Cash Flow Improvement Plan.”

Announced in July 2001, the company moved forward on an improvement plan that included an initiative composed of cost reduction and debt management strategies designed to increase annualized pre-tax cash flow from operations by at least $50 million by the end of fiscal year 2002. Over the past year, Southern Union said it has realized $68 million in pre-tax proceeds from the sale of non-core assets.

Based in New Smyrna Beach, FL, Atlantic Utilities operates South Florida Natural Gas and Atlantic Gas Corp. The companies distribute natural gas and propane to over 6,200 customers.

The company also reported last week that as part of a strategic plan to create efficiencies through combined operations, its New England division, including ProvGas, Valley Gas and Fall River Gas, will immediately begin operations as New England Gas Co.

“We feel the name New England Gas Company expresses our commitment to our region and fully explains who and what we are . . . the local gas distribution company,” said Thomas C. Robillard, president of the newly-formed New England Gas Co. “Our goal is to create a new company that is the premier local natural gas distributor in New England. The only way that we can reach that goal is through improved service and a commitment to manage our company more efficiently.”

In September 2000, Southern Union completed the purchase of the three New England natural gas distribution companies. Since then, a new management team has been implementing additional efficiencies.

“We know our customers expect that their calls will be answered quickly and completely, they want safe and reliable service, they want the best in related technology and they want a company that’s committed to our community,” said Robillard. “In other words, they want the best local gas company in New England and we intend to be just that.”

The Providence, RI-based New England Gas Co. serves over 290,000 residential and commercial customers in Rhode Island and Massachusetts. Southern Union is an international energy distribution company serving approximately 1.5 million customers through its divisions in Texas, Missouri, Pennsylvania, Rhode Island, Massachusetts and Mexico.

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