Atlanta-based energy company AGL Resources announced Tuesday that it will buy Nicor, Inc. to create a natural gas distribution company that will service roughly 4.5 million customers in the United States.
Illinois-based Nicor will merge with an AGL subsidiary in a deal with a total equity value of $2.4 billion in cash and stock. The newly-formed company will be valued at $8.6 billion, with $5.1 billion expected in annual revenues. AGL, whose customer base will nearly double from the transaction, will pay $21.20 in cash, as well as 0.8382 shares of AGL common stock for each Nicor share. Ultimately, AGL shareholders will hold about 67 percent of the combined company, with Nicor shareholders getting 33 percent.
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