Northwest (NW) Natural Holding is acquiring a US natural gas distribution utility owned by a Ridgewood Infrastructure affiliate in a $425m ($401m) deal.
NW Natural Holding has agreed to acquire SiEnergy Operating from Ridgewood-owned SiEnergy Capital Partners for $273m in cash, along with the assumption of $152m in debt.
NW Natural Holdings said it expects to finance the cash portion of the acquisition with junior subordinated notes in the first half of 2025.
SiEnergy Operating serves approximately 70,000 residential and commercial customers in the greater metropolitan areas of Houston, Dallas and Austin.
NW Natural Holdings said it intends to invest between $450m and $650m in the company over the next five years.
David H Anderson, CEO of NW Natural Holdings, said: 鈥淭he acquisition of SiEnergy builds on our core strength of operating utilities and delivering essential services to customers. Texas is one of the fastest growing states in the nation with a constructive regulatory and policy environment.
鈥淪iEnergy has a substantial number of contracts to add new customers in the coming years. We believe we will be well positioned to capture additional growth as Texas鈥� population expands and new housing developments provide opportunities for new customers.鈥�
Justin B Palfreyman, president of NW Natural Holdings, said: 鈥淲e have a proven track record of acquiring utilities, supporting growth and delivering safe and reliable service to customers. This acquisition directly aligns with our strategic and financial goals.
鈥淭hrough this transaction, we expect to meaningfully increase our presence in Texas, creating more opportunities for organic growth, and setting the stage for future growth鈥�
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