MDU Resources (MDU) to Acquire Intermountain Gas Company for $328 Million

July 1, 2008 5:19 PM EDT

MDU Resources Group, Inc. (NYSE: MDU) has entered into an agreement to acquire Intermountain Gas Company, a wholly-owned subsidiary of privately held Intermountain Industries, Inc. The acquisition is a cash-for-stock transaction. Intermountain was founded in 1955 and employs 332 people.

The enterprise value of the transaction, including indebtedness, is approximately $328 million. The company expects to finance the transaction through traditional means, including the issuance of a combination of long-term debt and equity, on a basis consistent with MDU Resources' utility capital structure. It is anticipated that closing will occur during the fourth quarter of 2008.

When the transaction is completed, Intermountain will become an indirect wholly owned subsidiary of MDU Resources, continuing to operate as Intermountain Gas Company. Intermountain will join Montana-Dakota Utilities Co., Great Plains Natural Gas Co. and Cascade Natural Gas Corp. as MDU Resources utility business units. The utility segment currently serves approximately 510,000 natural gas customers in North Dakota, Minnesota, Montana, Oregon, South Dakota, Washington and Wyoming, as well as nearly 121,000 electric customers in North Dakota, Montana, South Dakota and Wyoming.[SM]

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