Berkshire Hathaway Energy Announces Acquisition of AltaLink, L.P. and Joint Transmission Development Agreement with SNC-Lavalin
For more information, contact:
Kelly Groehler, vice president, communications and public affairs, at 515-281-2582 or 612-669-8602
DES MOINES, Iowa – (May 1, 2014) – Berkshire Hathaway Energy has announced it has reached a definitive acquisition agreement whereby Berkshire Hathaway Energy will acquire AltaLink, an indirect, wholly owned subsidiary of SNC-Lavalin Group Inc. (TSX:SNC). Under the terms of the agreement, Berkshire Hathaway Energy will purchase 100 percent of AltaLink for an estimated C$3.2 billion (approximately US$2.9 billion) in cash.
“AltaLink’s values align with our core principles, including the commitment to employees and their safety, customers, regulators and relationships with key stakeholders,” said Greg Abel, chairman, president and CEO, Berkshire Hathaway Energy. “The acquisition of AltaLink represents a great long-term opportunity to invest in Alberta’s critical transmission infrastructure and in Canada. We see this as a great addition to the Berkshire Hathaway Energy family, and we look forward to having AltaLink continue to support the economic growth and evolving energy needs of Alberta.”
AltaLink is a regulated transmission-only business, headquartered in Calgary, Alberta, with assets of C$5.9 billion as of December 31, 2013, and 2013 revenues of C$534.1 million. AltaLink’s assets include 280 substations and approximately 12,000 kilometers of transmission lines that help serve 3 million Albertans, which represents 85 percent of the population.
The transaction has been approved by both the SNC-Lavalin and Berkshire Hathaway Energy boards of directors, and is subject to customary closing conditions including required approvals. The transaction is expected to be completed by the end of 2014.
AltaLink will operate as a separate company under Berkshire Hathaway Energy with its current name and will continue to be headquartered and managed in Calgary. “We are pleased to be working with AltaLink’s dedicated employees and management team,” said John Cupparo, president, MidAmerican Transmission. “We look forward to AltaLink continuing to execute its business plans and delivering reliable service to Alberta.”
Berkshire Hathaway Energy has also announced that SNC-Lavalin Group and MidAmerican Transmission have mutually agreed to pursue joint transmission projects in North America.
The joint transmission project development agreement between MidAmerican Transmission and SNC-Lavalin Group is designed to bring significant advantages to North American transmission projects, combining the broad infrastructure strengths of SNC-Lavalin Group with the strong track record of MidAmerican Transmission on transmission projects. Through the joint agreement, the parties will look to pursue emerging transmission investment opportunities in Canada and the U.S.
SNC-Lavalin is one of the leading engineering and construction groups in the world, and is a major player in the ownership of infrastructure and in the provision of operations and maintenance services. Founded in 1911, SNC-Lavalin has offices across Canada and in over 40 other countries around the world, and is currently active in some 100 countries. www.snclavalin.com
Headquartered in Calgary, with offices in Edmonton, Red Deer and Lethbridge, AltaLink is Alberta's largest transmission provider. AltaLink is actively working with stakeholders to build new transmission projects in response to the province's growth. We ensure the transmission system will reliably meet Albertans' energy needs today and in the future, by providing access to clean, renewable electric energy and the lowest-priced supply available in the province.
MidAmerican Transmission, a subsidiary of Berkshire Hathaway Energy, is committed to the development and long-term ownership of transmission lines throughout the U.S. and Canada. The company has developed approximately $1.6 billion of transmission projects at 345 kilovolts and higher and has experience in traditional utility and stand-alone transmission projects.
Berkshire Hathaway Energy
Berkshire Hathaway Energy owns a portfolio of locally managed businesses that share a vision for the energy future, make sustainable investments to achieve that vision, and had $70 billion of assets as of Dec. 31, 2013. These businesses deliver safe, reliable service each day to more than 8.4 million customers and end-users around the world and consistently rank high among energy companies in customer satisfaction. Berkshire Hathaway Energy is headquartered in Des Moines, Iowa, U.S.A. Learn more and see a complete list of our businesses at www.berkshirehathawayenergyco.com.
This news release contains statements that do not directly or exclusively relate to historical facts. These statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can typically be identified by the use of forward-looking words, such as "will," "may," "could," "project," "believe," "anticipate," "expect," "estimate," "continue," "intend," "potential," "plan," "forecast" and similar terms. These statements are based upon Berkshire Hathaway Energy Company’s current intentions, assumptions, expectations and beliefs and are subject to risks, uncertainties and other important factors. Many of these factors are outside the control of Berkshire Hathaway Energy Company and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expectations include the impact of natural disasters and weather effects on revenues and other operating uncertainties, uncertainties relating to economic, political and business conditions and uncertainties regarding the impact of laws and regulations, including laws and regulations related to environmental protection, changes in government policy and competition. The foregoing factors that could cause Berkshire Hathaway Energy Company’s actual results to differ materially from those contemplated in the forward-looking statements included in this news release should not be construed as exclusive and should be considered in connection with information regarding risks and uncertainties that may affect Berkshire Hathaway Energy Company’s future results included in Berkshire Hathaway Energy Company’s filings with the Securities and Exchange Commission which are available at the Securities and Exchange Commission’s Web site (www.sec.gov). Berkshire Hathaway Energy Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.