SOUTHWEST GAS AGREES TO ACQUIRE NORTHERN PIPELINE CONSTRUCTION CO.LAS VEGAS, Nov. 13 /PRNewswire/ -- Southwest Gas Corporation Southwest Gas Corporation (NYSE: SWX) is an investor owned utility based in Las Vegas, Nevada. The company provides natural gas service to over 1.7 million residential, commercial, and industrial customers in Arizona, Nevada, and parts of northeastern and southeastern (NYSE NYSE
See: New York Stock Exchange : SWX) (Southwest) announced it has agreed to acquire Northern Pipeline Construction Co. (NPL), a privately held full-service underground gas pipeline contractor, for approximately $24 million. The agreement involves a stock-for-stock exchange in which Southwest will acquire 100 percent of the outstanding stock of NPL in exchange for common stock of Southwest. Because NPL is an existing successful business, it is expected they will make an immediate contribution to earnings after completion of the acquisition.
NPL, headquartered in Phoenix, Arizona, provides local gas distribution companies with installation, replacement and maintenance services for underground natural gas distribution systems. The principal focus of business operations centers around main and service line replacement and new business installation of mains and services. NPL serves approximately 25 customers in numerous locations throughout the United States. Annual revenues are approximately $100 million.
According to Michael O. Maffie, President and Chief Executive Officer of Southwest, "the business of NPL is the engineering, design, and installation of natural gas pipe. This is a process about which Southwest has knowledge and expertise." Maffie also stated that growth opportunities for NPL are excellent. "Local distribution companies throughout the country continue to upgrade and replace existing distribution systems and add new infrastructure to meet the needs of customer growth. NPL, with its reputation for providing quality services, is expected to benefit in such an environment."
The acquisition is expected to be completed in the second quarter of 1996 upon receipt of various governmental approvals.
Southwest Gas is a diversified natural gas utility and financial services organization. It provides natural gas service to over one million customers in Arizona, Nevada, and California. Its wholly owned subsidiary Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. , PriMerit Bank, is a federally chartered savings bank which markets a wide variety of consumer financial products and services through branches in northern and southern Nevada.
/CONTACT: Media: Dante Pistone, 702-876-7253, or Shareholders: Laura Hobbs, 702-876-7237, both of Southwest Gas/
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