Avista Corp., of Spokane, announced this afternoon that it has agreed to acquire Alaska Energy & Resources Co., a privately held Juneau, Alaska-based company that operates Alaska Electric Light & Power Co., in a transaction valued at $170 million.
The purchase is expected to be completed by July 1, 2014, pending regulatory approval and other conditions. After closing, the Alaska company will operate as a wholly-owned subsidiary of Avista.
Avista will issue its common stock to Alaska Energy's owners to fund the transaction. The transaction is projected to be negative to Avista's earnings in 2014, but positive to them in 2015.
Scott L. Morris, Avista's chairman, president, and CEO, said in a press release, "This agreement reflects Avista's strategy to expand and diversify energy assets and deliver long-term value to the customers, communities, and investors we serve."
Alaska Energy has 60 full-time employees and serves about 16,000 customers in the Juneau area. In addition to the utility operations, it owns the AJT Mining subsidiary, which is an inactive company.