US Retail Gas Operations of Kinder Morgan, Inc. Acquired by GE Energy Financial Services and Alinda Investments LLC
HOUSTON & LAKEWOOD, Colo.--(BUSINESS WIRE)--Kinder Morgan, Inc. (NYSE: KMI) has completed the sale of its US natural gas retail distribution and related operations serving over 260,000 customers in Colorado, Nebraska, Wyoming, as well as Hermosillo, Mexico, to GE Energy Financial Services and Alinda Investments LLC for $710 million plus working capital, the companies announced today. The retail business serves residential, commercial, agricultural and industrial customers through more than 11,900 miles of distribution and transmission pipelines, underground storage fields, and related facilities. The transaction, previously announced on August 14, 2006, has received all required regulatory approvals.
This first transaction by GE Energy Financial Services in a retail natural gas distribution business provides an opportunity for expansion. The GE unit also has investments in 7,700 miles of interstate natural gas pipelines in North America. “This acquisition of a well-established retail natural gas distribution business with a capable and experienced management team and workforce provides an excellent platform to grow our investment in retail gas distribution,” said Alex Urquhart, President and CEO of GE Energy Financial Services. “The transaction will be seamless to customers, who will continue to receive the same great service.”
Alinda Investments LLC is an affiliate of Alinda Capital Partners LLC, a privately-held firm that invests in infrastructure assets that provide essential services, and is a 50-percent owner with GE Energy Financial Services. "With its solid customer base and strong management team, this business is an excellent strategic fit for us. It provides essential energy infrastructure services to residential, commercial, industrial and agricultural customers, and has opportunities for growth,” said Chris Beale, Managing Partner of Alinda Capital.
The retail gas distribution business’ headquarters will continue to be in Lakewood, Colo., with its president, Dan Watson, leading the workforce. The business will continue to operate as Kinder Morgan Retail for approximately 60 days spanning the Choice Gas customer selection period and launch its new identity during May 2007. The new company continues to administer all selections made by customers during the upcoming Choice Gas selection period, including all Kinder Morgan supplier options.
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