AGL Resources to Buy Tropical Shipping Parent

AGL Resources to Buy Tropical Shipping Parent

AGL Resources agreed to acquire Nicor, parent of Caribbean carrier Tropical Shipping, in a $2.38 billion cash-and-stock deal that would combine two regional natural gas distributors.
Chicago-area natural-gas utility Nicor had been seeking a buyer through JPMorgan Chase.

Tropical, based in Palm Beach, Fla., had operating income of $3.6 million on operating revenue of $83.9 million in the quarter ended Sept. 30. Tropical’s revenue represented 24 percent of Nicor’s total revenue during the quarter.

Tropical operates 15 lift-on, lift-off and roll-on, roll-off vessels in the Bahamas and Caribbean. The company said it carried 41,500 20-foot equivalent units during its most recent quarter.

AGL said it will keep its corporate headquarters in Atlanta and house its gas distribution headquarters in Naperville, Ill., where Nicor is based. The new company is expected to have about $5.1 billion in annual revenue.

Both companies' boards approved the transaction, which is expected to close in the second half of 2011.

-- Contact Joseph Bonney at