Argo Acquiring Hawaiʻi Gas and Its Smaller Energy Companies for $514 Million
* Updated June 15, 9:49 AM
Hawaiʻi Gas, the state’s only franchised gas utility and largest propane distribution business, will be acquired for a reported $514 million by Argo Infrastructure Partners, which invests in utility infrastructure and has a longstanding track record of sustainable investing, according to a joint company news release.
The transaction is expected to close in the first half of 2022, subject to approval by the Hawaiʻi Public Utilities Commission and other customary conditions.
Argo currently has about $5 billion of assets under management in 14 infrastructure assets and businesses in North America.
“Argo seeks to invest in well-managed utilities that are moving us toward a sustainable future,” said Richard Klapow, managing director for the firm. “We fully support the State of Hawaiʻi’s goal of carbon neutrality by 2045 and Hawaiʻi Gas’ contributions to this goal, while continuing to provide safe and reliable energy services to residents and businesses. We are firmly committed to the environmental leadership of the state and Hawaiʻi Gas.”
Hawaiʻi Gas’ employee count, wages and union relationship will not be affected by the acquisition. The company’s headquarters location, management team and Hawaiʻi-based directors also will remain in place. Argo also will acquire Hawaiʻi Gas’ other smaller clean energy businesses, including the Waihonu Solar Farm.
Argo will appoint a qualified resident of Hawaiʻi to its board of directors so that the State’s views and culture are fully understood, considered and continued under Argo’s ownership.
“We believe that the change of ownership will be seamless for our commercial and residential customers, since neither our regulated rates nor daily operations will be affected,” said Alicia Moy, president and CEO of Hawaiʻi Gas. “I’m pleased that Argo has expressed strong support for the utility’s efforts to increase its renewable and zero-carbon emission energy sources, such as hydrogen, and for its support of our clean energy plan.”