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NextEra Energy divests Florida City Gas to Chesapeake Utilities for $923m

EditorPollock Mondal
Published 09/27/2023, 04:17 AM
© Reuters

NextEra Energy (NYSE:NEE), a leading clean energy company, has announced it is selling Florida City Gas (FCG) to Chesapeake Utilities (NYSE:CPK) for $923 million. The announcement was made on Wednesday.

Recognized as a trusted utility brand, FCG serves 120,000 customers. The transaction is currently under Hart-Scott-Rodino review and is expected to align with NextEra's financial projections. This includes adjusted earnings growth and a steady increase in dividends through 2024.

The deal was advised by Goldman Sachs & Co (NYSE:GS). LLC and Norton Rose Fulbright. NextEra Energy's CEO, John Ketchum, is leading the divestiture.

This move marks a significant shift in NextEra's business strategy as it continues to streamline its operations and focus on its core competencies. The sale of FCG to Chesapeake Utilities will help to strengthen the company's financial position and provide resources for future investment opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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