CH Energy subsidiary sells part of its business

AP News
Posted: Dec 11, 2009 3:58 PM

Griffith Energy Services, a subsidiary of CH Energy Group Inc., said Friday it closed the sale of some of its business serving markets in Rhode Island, Connecticut and Pennsylvania.

The sale was part of a plan to streamline operations and allow the fuel-oil delivery company to focus on its Mid-Atlantic operations.

Canadian-based Superior Plus acquired approximately 47,000 customers in the deal for $76 million.

Including closing adjustments, primarily for working capital, Griffith received about $74 million.

The sale resulted in a gain of about $6.5 million after taxes, about 40 cents per share, said CH Energy Group CEO Steven V. Lant.

The transaction also results in the accelerated recovery of about $10 million of goodwill, which reduces the book value of the portion of Griffith's businesses that it will continue to own, he said.

Griffith retains about 56,000 customers throughout several Mid-Atlantic states.

CH Energy Group provides electricity, natural gas and fuel distribution through several subsidiaries.

Shares rose 41 cents to $41.96 in late trading.