Sempra US Gas & Power Sells EnergySouth for $320 Million

Sempra U.S. Gas & Power, a unit of San Diego-based Sempra Energy, announced Sept. 12 it has sold the parent company of two natural gas distribution services in Alabama and Mississippi for $320 million in cash. The buyer, St. Louis-based Spire Inc., agreed to assume existing debt of $67 million as part of the deal.

The sale gives Spire ownership of EnergySouth Inc., which includes Mobile Gas Service Corp. and Willmut Gas & Oil Co. Originally announced April 26, the deal does not include Bay Gas Storage Co., Mississippi Hub LLC, Liberty Gas Storage and Southern Gas Transmission, which were previously part of EnergySouth but will continue to be owned by Sempra U.S. Gas & Power.

Mobile Gas has 85,000 residential, commercial and industrial customers in Mobile and Baldwin counties in southwest Alabama, while Willmut serves 19,000 customers in portions of Mississippi’s Covington, Forrest, Jones, Lamar, Rankin and Simpson counties.

Sempra U.S. Gas & Power is a developer of renewable energy and natural gas projects. It acquired EnergySouth in 2008, and in 2012, it bought Willmut Gas.

Spire is one of the largest publicly traded natural gas companies in the United States, with about 1.56 million customers.

Sempra is an energy services company with 17,000 employees and more than 32 million customers around the world. It owns two California utilities: San Diego Gas & Electric and Southern California Gas Co.

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