RTTNews | Dec 30, 2020 11:16PM EST

23:15 Wednesday, December 30, 2020 (RTTNews.com) - UGI Corp (UGI) announced that it has agreed to acquire Mountaintop Energy Holdings LLC for an enterprise value of $540 million, which includes the assumption of approximately $140 million of debt. The transaction is expected to close in the second half of calendar year 2021.

UGI stated that the enterprise value represents approximately 1.4 times projected 2021 rate base

UGI expects to finance the acquisition through debt and / or equity-linked securities and existing liquidity to optimize accretion while maintaining a strong balance sheet. UGI said it does not expect to issue common equity to finance the acquisition.

UGI sees Mountaineer Gas Company transaction to be accretive to adjusted EPS in the first full year of combined operations. This transaction will support UGI's long-term annual commitments to grow EPS and dividends by 6% - 10% and 4%, respectively.

UGI expects Mountaineer Gas Company acquisition will increase UGI's regulated utility rate base and customers served by nearly 14% and 30%, respectively.

Read the original article on RTTNews ( https://www.rttnews.com/3156884/ugi-to-buy-mountaintop-energy-holdings-for-an-enterprise-value-of-540-mln.aspx)

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