CORNING, N.Y. (WETM) – Corning Natural Gas Holding Corporation announced on Jan 13. that it will be acquired by Argo Infrastructure Partners, LP for approximately $150 million.
Argo is an independent infrastructure investment firm with a focus on utilities and other long duration infrastructure assets.
The agreement is structured as a merger and provides a 45 day “go-shop” period and will require Corning to suspend its dividend reinvestment program (DRP).
President and CEO of Corning Natural Gas Holding Company, Mike German, said how this merger will give Corning’s three subsidiaries more capital to invest in safety, reliability, and expansion of their services.
Managing Director for Argo, Richard Klapow, said how Argo has a “substantial track record as a long-term investor in the energy and utilities sector”.
“We were attracted to Corning’s high quality asset base, leadership, and customer commitment,” said Klapow. “Our team’s decades of experience managing gas and electric utility investments, combined with our access to long-term capital, places us in an ideal position to support Corning’s ongoing infrastructure investment program and management’s efforts in achieving its customer service goals.”
Once the merger is complete, Corning expects to maintain both its leadership team and employees with no changes in operation and customer service.