Dominion Resources, Inc., has announced that it has closed the transaction to acquire Carolina Gas Transmission (CGT) from SCANA Corporation for approximately US$492.9 million, excluding working capital adjustments. CGT owns and operates nearly 1500 miles of FERC-regulated interstate natural gas pipeline in South Carolina and southeastern Georgia.
The transaction includes no assumption of debt and is expected to be immediately accretive to Dominion's operating earnings per share.
Subject to board approvals by Dominion and Dominion Midstream GP, LLC, the general partner of Dominion Midstream Partners, LP, Dominion expects to contribute CGT into Dominion Midstream by mid-year 2015 for a combination of debt and units.
The contribution of CGT is also anticipated to be immediately accretive to Dominion Midstream's distributed cash flow per unit. This transaction supports the partnership's intention to grow distributions to unitholders at a best-in-class rate.
Dominion is offering continued employment for CGT's approximately 120 person workforce. In addition, the company has committed to an extended period of rate stability for current CGT customers. Dominion expects to build upon CGT's existing infrastructure growth plans to enable this fully subscribed system to meet the increasing demand for natural gas transportation services in the region.
McGuireWoods LLP was the company's legal adviser for the acquisition.
Adapted from press release by Hannah Priestley-Eaton