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TAMPA — TECO Energy plans to fuel its growth by more than 50% through the acquisition of New Mexico Gas Co.
On Tuesday, the Tampa-based utility filed an application of more than 100 pages with the Mexico Public Regulation Commission seeking approval of its purchase of Albuquerque-based New Mexico Gas Co., says a news release.
The deal, valued at $950 million, includes the assumption of New Mexico Gas Co.'s debt of $200 million.
TECO expects to receive approval and close the deal — the largest in its history — in the first quarter of 2014. TECO (symbol: TE; recent price: $17.02) entered into a definitive stock purchase agreement in May with New Mexico Gas Co.'s parent, Continental Energy Systems.
Through the acquisition, TECO will expand its 1 million customer base with 509,000 customers in New Mexico.
TECO, the state's third-largest investor-owned utility, is the parent company of Tampa Electric Co., which operates Tampa Electric and Peoples Gas System. Tampa Electric serves more than 687,000 customers in West Central Florida, while Peoples Gas has 345,000 customers in many of Florida's metropolitan areas. Its other major subsidiary TECO Coal has production facilities in Kentucky and Virginia.
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