Canadian multinational Emera Inc. has entered into an agreement to sell its wholly owned New Mexico Gas Co. (NMGC) to private equity firm Bernhard Capital Partners (BCP) for $1.252 billion, including the assumption of $500 million in debt, the parties said on Aug. 6.

Emera, an international energy and services company, said NMGC’s purchase price represents an approximate 23x multiple to its earnings over the last 12 months. The deal is also expected to lower Emera’s leverage and improve debt metrics.

Emera said its estimated after-tax net proceeds from the deal will be approximately $750 million, which will be used to repay holding company debt and support investment opportunities in its regulated utility businesses.

Emera acquired NMGC as part of its acquisition of the TECO group of companies in 2016. Since purchasing NMGC, the company has grown into New Mexico’s largest natural gas utility, serving more than 545,000 customers and managing more than 12,000 miles of transmission and distribution pipelines.

 “This transaction strengthens Emera’s balance sheet, supports our ambitious capital plan and reinforces our strategic decision to optimize our portfolio and reallocate capital to our highest growth markets to drive long-term value for our shareholders,” said Scott Balfour, Emera’s president and CEO.

BCP, a services and infrastructure-focused private equity firm, has an extensive operational footprint across the U.S. In February, BCP entered into $1.2 billion in agreements to acquire multiple local gas distribution companies from CenterPoint Energy. To date, BCP has invested in nearly 70 companies across 20 platforms, including several utility companies, that collectively employ approximately 20,000 people globally.

BCP Founder and Partner Jeff Jenkins said the NMGC acquisition directly aligns with the firm’s strategy to invest in infrastructure assets and utilities.

“The leadership team and all employees will remain in place after closing, and we anticipate creating approximately 70 new, local jobs,” Jenkins said. “Our priority is ensuring the continuation of reliable, affordable natural gas service to customers and communities across the state.”

BCP’s transaction with Emera is subject to regulatory approval by the New Mexico Public Regulation Commission (NMPRC) and pursuant to the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to close in late 2025, but not close before Sept. 30, 2025, unless otherwise authorized by the NMPRC.

J.P. Morgan Securities LLC is acting as exclusive transaction financial adviser to Emera. Davis Polk & Wardwell LLP is serving as Emera’s legal adviser.

Jefferies LLC is serving as the exclusive financial adviser to Bernhard Capital with Kirkland & Ellis LLP serving as legal adviser.

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