WPS Resources Corp. and Upper Peninsula Energy Corp., which have a history of working together on power sales and emergency dispatch, are merging.
WPS Resources Corp.'s main subsidiary, Wisconsin Public Service Corp., is an electric and gas utility serving 400,000 customers. Upper Peninsula Energy Corp.'s main subsidiary, Upper Peninsula Power Co., has 48,000 electric customers.
The acquisition is structured as a stock swap valued at $71.4 million. Holders of Upper Peninsula common stock will receive 0.90 shares of WPS stock for each share held.
Duff & Phelps Credit Rating Co. has reaffirmed the ratings of Wisconsin Public Service, calling the acquisition a "natural outcome" of the utility's strategy to form strategic alliances and joint ventures to expand its customer base and lower costs.
Articles found on this page are available to Internet subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.