Empire District Electric agrees to $2.4B buyout

Joplin-based Empire District Electric Co. (NYSE: EDE) agreed to a $2.4 billion buyout by Canadian company Algonquin Power & Utilities Corp. (TSX: AQN).

Approved unanimously by the boards of both companies, the transaction would make Empire District Electric a subsidiary of Liberty Utilities Co., the utility operation of Oakville, Ontario-based Algonquin, according to a news release.

The buyout, which is subject to regulatory approvals, represents a 21 percent premium to Empire District’s Feb. 8 closing price. The Joplin company’s shareholders would receive $34 per common share.

The deal expected to close in first-quarter 2017 also includes nearly $1 billion in Empire District debt.

“The acquisition of Empire represents a continuation of our disciplined growth strategy, which strengthens and diversifies Algonquin’s existing businesses and strategically expands our regulated utility footprint in the Midwest United States,” Algonquin CEO Ian Robertson said in the release. “Empire’s service territories, business lines and corporate culture are highly complementary to Liberty Utilities, and we will continue Empire’s history of prudently investing in its systems, communities and employees.”

During the fourth quarter, Empire District confirmed media reports it was working with an adviser to attract potential buyers. When the company announcing its fourth-quarter and full-year earnings last week, President and CEO Brad Beecher told investors the company had no update.

Empire District serves 218,000 customers in Missouri, Kansas, Oklahoma and Arkansas. Its Show-Me State service area includes Greene County.

In 2015, the company posted $56.6 million in earnings, a nearly 16 percent drop from 2014.

EDE shares were trading at $28.20 as of 3:46 a.m., compared to a 52-week range of $20.69 to $30.18.