Chesapeake Utilities Corporation announced completion of the merger of Gatherco, Inc. into Aspire Energy of Ohio, LLC Chesapeake Utilities’ newest wholly-owned subsidiary. The transaction was valued at $59.2 million.
Gatherco, located in Orrville, Ohio, was established in 1997 when it acquired Columbia Gas Transmission’s natural gas gathering assets in Ohio.
Gatherco has operations in 40 counties throughout the state. Gatherco’s assets include 16 gathering systems and more than 2,000 miles of pipelines and right-of-way in central and eastern Ohio. The area has gas wells, with the potential for additional production from new deposits.
Aspire Energy will use these assets to provide natural gas midstream services, processing and transportation services to more than 300 producers, and wholesale natural gas supply to more 30,000 end users in Ohio. Aspire Energy will report to Elaine B. Bittner, Chesapeake Utilities Senior Vice President of Strategic Development.
Michael P. McMasters, CEO of Chesapeake Utilities, remarked, “We are pleased with how efficiently the merger was completed. It is a great strategic win for the management and customers of both companies and is projected to generate accretive earnings in the first full year of operation following the merger. In addition, we believe that there are significant growth opportunities to add both production and distribution customers in and around the existing system. Gatherco’s valuable rights of way could also present additional opportunities for growth.”
The merger agreement was announced on February 2 and was approved by Gatherco shareholders on March 20.