Algonquin Power & Utilities Corp. agreed to acquire Ascendant Group Ltd., including subsidiary Bermuda Electric Light Co. Ltd., for $365 million in cash.
Bermuda Electric Light is the sole electric utility providing regulated electrical generation, transmission and distribution services to Bermuda. The utility serves 63,000 customers.
Under the deal, Algonquin Power's international power and utilities investment platform, AAGES, will acquire all issued and outstanding shares of Ascendant at $36 per share, according to a June 3 news release.
Algonquin Power said the acquisition price is immediately accretive to its 2020 EPS. The implied expected closing net enterprise value of $470 million represents a 7.3x multiple of forecast 2020 EBITDA.
Algonquin Power committed to running all Ascendant companies locally and keeping the employee base Bermudian. It also committed to supporting Bermuda Electric Light in its collaborations with regulators to shape and implement the integrated resource plan for Bermuda, Ascendant said in a separate June 3 statement.
The deal is expected to close in late 2019, subject to customary closing conditions including the approval of Ascendant's common shareholders and the receipt of certain regulatory and government approvals in Bermuda.
Algonquin Power hired Raymond James Ltd. as financial advisor, Husch Blackwell LLP as corporate legal counsel and Conyers Dill & Pearman as local legal counsel.