NEW YORK--(BUSINESS WIRE)--BBIP (Balfour Beatty Infrastructure Partners LLP) announces today, on behalf of its clients (BBIP Investors), the successful completion of the purchase of 100 percent of the stock of Upper Peninsula Power Company (UPPCO) from Integrys Energy Group, Inc. (NYSE:TEG).
The acquisition of UPPCO is consistent with BBIP Investors’ strategy to invest in the key essential infrastructure sectors of energy, transportation and utilities in North America and Western Europe. The transaction was announced at the signing of definitive documentation in January of 2014 and was approved by the Michigan Public Service Commission on June 6, 2014 and by the Federal Energy Regulatory Commission on August 20, 2014.
UPPCO is a regulated electric utility business that provides distribution and power supply services to approximately 52,000 residential, commercial, and industrial customers in the Upper Peninsula of Michigan. UPPCO was formed in 1947 through the merger of three small utilities (one of which dated back to 1884) and was acquired by Integrys in 1998.
Commenting today for BBIP, Managing Partner Rob Gregor said: “The completion of the acquisition of UPPCO is an important landmark for BBIP, representing BBIP Investors’ entrance into the North American utility markets. For UPPCO, its customers, and stakeholders, it will be business as usual. The company’s headquarters will be relocated to Michigan and, on behalf of our investors, we are committed to maintaining safe and reliable customer service, and investing in the company and the communities UPPCO serves.”
Jeff Neil, who heads the North American unit for BBIP, added: “We are excited by this important acquisition and underline our investors’ commitment to providing UPPCO with the capital necessary to maintain and improve its existing energy delivery infrastructure. To achieve the objective of providing safe, reliable and affordable power in the Upper Peninsula and the strategy of network renewal and enhancement, a senior management team has been established. This senior team will be based in the Upper Peninsula and brings substantial experience in managing utilities in the Upper Midwest as well as substantial experience in the power generation sector.”
Under the terms of the agreement, BBIP Investors are acquiring UPPCO’s electricity distribution and generation operations, excluding its American Transmission Company holdings. To help ensure a smooth and seamless transition, Integrys will provide certain transition services to UPPCO.
Rothschild Inc. serves as financial advisor for this transaction, and Baker & McKenzie LLP serves as the legal advisors. The Bank of Nova Scotia and RBC Capital Markets are jointly providing structuring and placement advice together with financing for the transaction.
Notes to editors:
BBIP is an infrastructure equity investment advisory funds business with offices in London and New York focusing on investments in utilities, energy and transport infrastructure in the United States, Canada and Europe. BBIP advises a number of investors including Balfour Beatty Infrastructure Partners L.P., an infrastructure equity fund with total commitments as of July 2014 of $617.8 million with investors including pension funds and life insurance companies from the United States, Germany, Switzerland, France and the UK. For more information on BBIP please visit www.bbip.com.
BBIP is sponsored by Balfour Beatty plc (Balfour Beatty), a global infrastructure group with capabilities in construction services, support services and infrastructure investments. Balfour Beatty has significant experience in the electric utility sector and employs approximately 40,000 people worldwide. More information is available at www.balfourbeatty.com.
About Integrys Energy Group, Inc.
Integrys Energy Group is a diversified energy holding company with regulated natural gas and electric utility operations (serving customers in Illinois, Michigan, Minnesota, and Wisconsin), an approximate 34% equity ownership interest in American Transmission Company (a federally regulated electric transmission company operating in Wisconsin, Michigan, Minnesota and Illinois), and non-regulated energy operations. More information is available at www.integrysgroup.com.
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they do not relate strictly to historical or current facts and often include words such as "anticipate", "expect" "intend", “believe", "plan", "may", "will", "should", "estimate", "potential" and other similar words. Such statements include, among others, those concerning expected financial performance and strategic and operational plans, as well as assumptions, expectations, predictions, intentions or beliefs about future events.
Forward-looking statements are beyond the ability of Integrys Energy Group or BBIP or its clients (together, the Parties) to control and, in many cases, the Parties cannot predict what factors would cause actual results to differ materially from those indicated by forward-looking statements. Please see Integrys Energy Group's periodic reports filed with the Securities and Exchange Commission (including its 10-K and 10-Qs) for a listing of certain factors that could cause actual results to differ materially from those contained in forward-looking statements. Our forward-looking statements speak only as of the date of this release, actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and, other than as required by law, the Parties undertake no obligation to update any such statements, whether as a result of new information, future events, or otherwise.