Energy West Inc. has signed a definitive agreement for the sale of its subsidiary, Energy West Wyoming Inc., as well its Wyoming pipeline assets and related real estate, equipment and contracts to Black Hills Corp. (NYSE: BKH) for $17 million. Energy West Inc. is a subsidiary of Gas Natural Inc. (NYSE MKT: EGAS).
The closing is subject to customary closing conditions as well as regulatory approvals. The Energy West Wyoming transaction also contains a working capital adjustment at closing and a post-closing working capital "true-up." As part of the agreement, Energy West Inc. and Black Hills Corp. will enter into a transition services agreement. The transaction is expected to close in about six to 12 months.
Energy West Inc. intends to use the proceeds from this transaction to reinvest into the business. Including the gain anticipated on this transaction, the redeployment of resources is expected to have a significant positive impact on the company's earnings in 2015 and beyond.
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