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5h ago

Black Hills to Acquire NorthWestern Energy in $3.6 Billion All-Stock Deal

The deal enters regulatory review across several states, with closing targeted in 12 to 15 months.

This is a file photo of Xcel Energy employees working on a utility pole on Stanford Avenue in Englewood.
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Overview

  • NorthWestern shareholders will receive 0.98 Black Hills share per share, valuing NorthWestern at about $59 and a 7.66% premium to its last close.
  • Black Hills shareholders are expected to own roughly 56% of the combined company, which is projected to have a ~$7.8 billion market value and $15.4 billion enterprise value.
  • The merged utility would serve about 2.1 million customers in eight contiguous states and establish a new name and ticker with headquarters in Rapid City, South Dakota.
  • NorthWestern CEO Brian Bird will lead the combined company, Crystal Lail will be CFO, Black Hills CEO Linn Evans will retire at closing, and the 11-member board will have six Black Hills and five NorthWestern designees.
  • The companies cite rising electricity demand and grid investment needs, Montana regulators signaled close scrutiny alongside other approvals including FERC, and Black Hills shares rose about 1.5% in premarket trading.