AGL Buys NiSource's Warranty Business for $120 Million

Before you go, we thought you'd like these...
Before you go close icon

On Thursday, natural gas distributor AGL Resourcesannounced it has acquired "certain assets" from the retail services business of fellow gas distributor NiSource .

The business in question provides warranties and "energy efficiency leasing solutions" for homes and small businesses. The assets that AGL has acquired include approximately 500,000 customer warranty plans for appliances and gas lines for customers in Indiana, Kentucky, Massachusetts, Ohio, and Pennsylvania. The plans are sold under the ESP brand name in Indiana, the Columbia Retail Services and Service Protection Group brands in Kentucy, Ohio, and Pennsylvania, and the Guardian Care brand in Massachusetts.

In a statement, AGL clarified that this purchase "almost doubles the size of our retail services business." Additionally, the company says it believes the transaction will be accretive to profits in 2013.


Meanwhile, NiSource says that the divestiture of these assets -- and the approximately $120 million it will receive for them from AGL -- will allow it to further focus on its core regulated utility and pipeline operations. 

The article AGL Buys NiSource's Warranty Business for $120 Million originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners