Maine & Maritimes to be acquired
Canadian power company Emera Inc., the owner of Bangor Hydro Electric Co., plans to acquire northern Maine utility Maine & Maritimes Corp.
Maine & Maritimes is merging with BHE Holdings Inc. of Bangor, a subsidiary of Nova Scotia-based Emera. Under the deal, all outstanding shares of Maine & Maritimes will be purchased for $45 per share, a more than 40% premium based on the company's closing share price yesterday, according to a press release. Maine & Maritimes has 1.7 million shares outstanding, valuing the transaction at about $77 million. The merger has been approved by Maine & Maritimes' board and awaits shareholder approval. The deal is expected to close later this year.
The Presque Isle-based owner of Maine Public Service Co. will become a wholly owned subsidiary of Emera, which bought Bangor Hydro Electric in 2001. Maine & Maritimes President and CEO Brent Boyles said the merger will strengthen the company's finances and improve reliability for northern Maine customers. No layoffs are expected as part of the merger, and Emera will honor the collective bargaining agreements in place with the International Brotherhood of Electrical Workers Local 1837, according to the release.
Last October, Maine & Maritimes denied rumors it was for sale, after it hired KeyBanc Capital Markets Inc. as a financial adviser to explore "strategic alternatives." Maine & Maritimes also owns MAM Utility Services Group, an unregulated corporation that handles transmission line and substation design and construction. Emera Inc. has $5.3 billion in assets, and 94% of its revenues are earned by Bangor Hydro Electric, Nova Scotia Power Inc. and the Brunswick Pipeline.
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