NEXTERA ENERGY INC acquired Gulf Power Company, Florida City Gas and Oleander/Stanton gas plants (from Southern Company) for approximately $6.475 billion, including assumption of approximately $1.4 billion of Gulf Power debt, a transaction announced in May 2018, structured as all cash. The deal was a Asset purchase.
Gulf Power Company, Florida City Gas and Oleander/Stanton gas plants (from Southern Company) operates in Regulated electric utility / regulated natural gas (Florida), is based in Florida (Gulf Power — northwest Florida panhandle; Florida City Gas — south Florida). NextEra entered into definitive agreements with Southern Company to acquire Gulf Power (a regulated electric utility serving northwest Florida), Florida City Gas (a regulated natural-gas distributor), and Southern's ownership interests in the Oleander and Stanton natural-gas generating plants in Florida. The company described the deals as complementing its existing Florida operations.
Compelling all-cash transactions of attractive electric and natural-gas franchises that complement NextEra Energy's existing operations within Florida; expected to be immediately accretive to earnings and to raise 2020 and 2021 adjusted EPS expectations by $0.15 and $0.20, respectively, while maintaining $5 billion to $7 billion of excess balance-sheet capacity post-closing.
Attractive regulated electric and gas franchises adjacent to NextEra's Florida Power & Light footprint, with scope for NextEra's operating model to improve cost and reliability. NextEra's industry-leading operating capabilities, continuous-improvement focus and innovation expected to benefit Gulf Power and Florida City Gas customers; immediately accretive to earnings. Gulf Power initially operated as a standalone NextEra electric utility (later consolidated into Florida Power & Light); Florida City Gas operated as a NextEra regulated gas utility.
We are pleased to have reached definitive agreements with Southern Company to acquire Gulf Power and Florida City Gas, along with Southern Company's Oleander and Stanton facilities.Jim Robo, Chairman and CEO, NextEra Energy
Advisory firms were not disclosed for this transaction.