SOURCE: Integrys

Integrys

September 01, 2011 07:00 ET

Integrys Energy Group, Inc. Announces the Acquisition of Two Compressed Natural Gas Fueling Businesses

Transaction Enables Integrys Energy Group's Entry Into Compressed Natural Gas Fueling Business

CHICAGO, IL--(Marketwire - Sep 1, 2011) - Integrys Energy Group, Inc. (NYSE: TEG) announced today the acquisition of two operating businesses involved in the compressed natural gas (CNG) fueling business, Pinnacle CNG Systems and Trillium USA, previously owned by Wagner & Brown, Ltd. The transaction allows Integrys Energy Group to enter the CNG fueling marketplace, bring demonstrated capability to customers and enable market growth.

"Expansion into this business is consistent with our mission of providing customers with the best value in energy and related services," said Integrys Chairman, President and Chief Executive Officer Charlie Schrock. "Our decision to enter this market is in response to customer needs, and this is complementary to our existing skill sets in regulated and nonregulated natural gas and electric services."

Use of CNG as a transportation fuel is growing because it is economical and clean-burning. It also capitalizes on the abundant supply of domestic natural gas.

Expanding into the CNG fueling business via this acquisition brings Integrys Energy Group several benefits. These include the ability to build on the 20-year experience base of these established companies, use of existing refueling station operating infrastructure, and market reputation built on their years of demonstrated capability and reliable performance.

The acquisition also allows Integrys to take advantage of the broad-based capability at all stages of the CNG value chain of Pinnacle and Trillium, from refueling equipment design and manufacturing, station design, engineering and construction, and ongoing operation and maintenance services.

"Together, Integrys Energy Group, Trillium and Pinnacle have the natural gas industry, CNG engineering, manufacturing and operating services expertise unmatched in the industry," added Schrock.

The acquisition is expected to provide a significant advantage as the CNG market continues to evolve. According to Natural Gas Vehicles for America, there are more than 12 million natural gas vehicles (NGVs) in use worldwide, including 110,000 operating in the United States. The International Association of Natural Gas Vehicles estimates that there will be more than 50 million NGVs worldwide within the next ten years, or about 9 percent of the world transportation fleets (from http://www.ngvc.org/mktplace/index.html).

The transaction consideration was all cash, with Integrys Energy Group acquiring all the outstanding common stock and membership interest of Pinnacle and Trillium. Pinnacle and Trillium will be subsidiaries of Integrys Transportation Fuels, LLC, which will hold Integrys' CNG business activities. The subsidiaries are marketing under the existing names in current markets. The acquisition is not expected to have a material impact on the 2011 financial results for Integrys Energy Group.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they do not relate strictly to historical or current facts and often include words such as "anticipate," "expect," "intend," and other similar words. Forward-looking statements are beyond the ability of Integrys Energy Group to control and, in many cases, Integrys Energy Group cannot predict what factors would cause actual results to differ materially from those indicated by forward-looking statements. Please see Integrys Energy Group's periodic reports filed with the Securities and Exchange Commission (including its 10-K and 10-Qs) for a listing of certain factors that could cause actual results to differ materially from those contained in forward-looking statements.

About Integrys Energy Group, Inc.

Integrys Energy Group is a diversified holding company with regulated utility operations operating through six wholly owned subsidiaries, Wisconsin Public Service Corporation, The Peoples Gas Light and Coke Company, North Shore Gas Company, Upper Peninsula Power Company, Michigan Gas Utilities Corporation, and Minnesota Energy Resources Corporation; nonregulated operations through its wholly owned nonregulated subsidiary, Integrys Energy Services; and also a 34% equity ownership interest in American Transmission Company LLC (an electric transmission company operating in Wisconsin, Michigan, Minnesota, and Illinois).

More information about Integrys Energy Group, Inc. is available online at www.integrysgroup.com.

About Wagner & Brown, Ltd.

Wagner & Brown, Ltd. is an oil and gas exploration company. The company has exploration and production interests in Texas, Oklahoma, New Mexico, Louisiana, Michigan, Kansas, Wyoming, and Mississippi. The company was founded in 1962 and is headquartered in Midland, Texas with an additional office in Houston, Texas.

About Trillium USA

Trillium USA was founded in 1994 and acquired by Wagner & Brown in 2002. Its headquarters are in Salt Lake City. Their core services include:

  • CNG fueling facility design
  • CNG equipment selection and procurement
  • Facility construction and installation
  • CNG station service and maintenance

Trillium owns and/or operates 20 fueling stations in multiple states. Trillium's customer base includes mass transit operators and large private fleet operators. In addition, Trillium owns and operates public access, retail CNG stations. For more information, see www.trilliumusa.com.

About Pinnacle CNG Systems

Wagner & Brown started Pinnacle CNG Systems in 1991 and is based in Midland, Texas. Pinnacle has compression packaging expertise, including design, fabrication, construction and operation of complete CNG fueling stations (owns and/or operates approximately 20 CNG fueling stations). They also manufacture and sell a unique, patented method to pressurize CNG called a hydraulic intensifier. Pinnacle builds, owns and operates CNG stations for customers, including municipal and private fleet operators. In addition, Pinnacle owns and operates public access, retail CNG stations. For more information, see www.pinnaclecng.com.

Contact Information

  • Steven P. Eschbach, CFA
    Vice President - Investor Relations
    Integrys Energy Group, Inc.
    (312) 228-5408