AltaGas Ltd. is buying Blythe Energy LLC for $515 million from LS Power Equity Advisors in a deal that will expand its mix of energy types and geographic reach.
Blythe owns a natural gas-fired combined cycle plant and electric transmission line in Southern California.
The company said the deal is an important addition to its power business as it adds natural gas-fired power generation to its portfolio. And the facility is well-positioned to access the two premium power markets in Arizona and California in the future.
The acquisition is expected to add to earnings and cash flow next year.
AltaGas said the deal is subject to regulatory approval by the Federal Energy Regulatory Commission. It is expected to close in the second quarter.
Shares of AltaGas fell $1.20, or 3.3 percent, to $34.84 in morning trading. The Canadian company's stock has traded between $27.46 and $36.79 in the past 52 weeks.