South Jersey Industries will expand its customer base as it acquires two utility companies in a $1.7 billion deal.
The Folsom-based utility company announced it entered into a purchase agreement with with Elizabethtown Gas and Elkton Gas in Maryland from Pivotal Utilities Holdings Inc., a subsidiary of Southern Gas Co. South Jersey Industries said the transaction is expected to close in mid-2018.
The merger will make South Jersey Industries the second-largest natural gas provider in New Jersey, providing service to more than 675,000 customers. In addition to Elizabethtown Gas’ 288,000 customers, the company will also add more than 6,000 customers in Maryland as part of the deal, according to a news release.
“The acquisition of Elizabethtown Gas and Elkton Gas is a great fit for SJI and reinforces our commitment to high quality, regulated earnings growth,” Michael J. Renna, President and CEO of South Jersey Industries, said in the statement.
The deal is still awaiting accreditation and is subject to approvals by the New Jersey Board of Public Utilities and the Maryland Public Service Commission, as well as the Federal Energy Regulatory Commission and the Federal Communications Commission, the release stated.