Printer Friendly

SOUTHWEST GAS AGREES TO ACQUIRE NORTHERN PIPELINE CONSTRUCTION CO.

LAS VEGAS, Nov. 13 /PRNewswire/ -- Southwest Gas Corporation (NYSE: 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, 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.
 -0- 11/13/95


/CONTACT: Media: Dante Pistone, 702-876-7253, or Shareholders: Laura Hobbs, 702-876-7237, both of Southwest Gas/

CO: Southwest Gas Corp.; Northern Pipeline Construction Co. ST: Nevada IN: OIL SU: TNM

KL-JL -- LAM088 -- 0445 11/13/95 17:35 EST
COPYRIGHT 1995 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1995 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 13, 1995
Words:349
Previous Article:INVESTOR GROUP PROVIDES CASH INFUSION FOR THE WORLD POG FEDERATION
Next Article:RESMED INC. ANNOUNCES FINANCIAL RESULTS FOR QUARTER ENDED SEPTEMBER 30, 1995
Topics:

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters