Emera Inc. to acquire Maine & Maritimes Corp. for about $75.7 million

HALIFAX, N.S. - Canadian power and pipeline company Emera Inc. (TSX:EMA) says it has reached an agreement to acquire Maine & Maritimes Corp. (NYSE:MAM) for about US$75.7 million in cash.

The acquisition, announced Friday by the Halifax-based company, is worth $45 per share in cash, a 40 per cent premium over the closing price on Thursday.

Maine & Maritimes is the parent company of Maine Public Service and serves about 36,000 customers in Northern Maine. Emera said the purchase will boost its presence in Maine, where it bought Bangor Hydro Electric Company in 2001.

"We look forward to serving the customers of Northern Maine," said Emera president and chief executive Chris Huskilson in a release.

"This merger is an important next step in Emera's strategy of growth and integration within the Northeast market, by geographically expanding our service territory in Maine to the New Brunswick market."

Emera's core business is electricity, including through Nova Scotia Power Inc.. It also has a 145-kilometre natural gas pipeline in New Brunswick and investments in several Caribbean companies.

Maine & Maritimes' board of directors support the Emera offer, though it still requires approval from both shareholders and regulators before it closes later this year.

The company said it expects regulatory approvals to take about six to eight months.

Emera noted that it doesn't have any immediate plans for layoffs, and that both Maine Public Service and Bangor Hydro will continue to operate separately in their regions.