On August 5, 2024, Emera Inc. (TSX) announced an agreement to sell its wholly owned subsidiary, New Mexico Gas Company, Inc. (NMGC), to Bernhard Capital Partners (BCP) for $1.252 billion USD (approximately $1.67 billion CAD at the time of the announcement). This total included the assumption of approximately $500 million USD (about $665 million CAD) in debt, subject to customary closing adjustments.

Emera's President and CEO, Scott Balfour, stated that the transaction strengthened Emera's balance sheet, supported its ambitious capital plan, and aligned with its strategic decision to optimize its portfolio by reallocating capital to high-growth markets. Under Emera's ownership since 2016, NMGC had grown to serve over 545,000 customers and manage more than 12,000 miles of transmission and distribution pipelines.

BCP Founder and Partner, Jeff Jenkins, highlighted that the acquisition aligned with BCP’s strategy to invest in critical infrastructure and utility assets. BCP committed to retaining NMGC's leadership team and employees, anticipating the creation of approximately 70 new local jobs.

The transaction, representing approximately 23x last 12 months earnings and 1.42x rate base, was expected to close in late 2025, pending regulatory approvals from the New Mexico Public Regulation Commission and compliance with the Hart-Scott-Rodino Antitrust Improvements Act. Estimated after-tax net proceeds of around $750 million USD (approximately $1 billion CAD) were planned to be used by Emera to repay debt and support investment opportunities in its regulated utility businesses.

Emera was advised by J.P. Morgan Securities LLC as the exclusive financial advisor and Davis Polk & Wardwell LLP as the legal advisor. Bernhard Capital was advised by Jefferies LLC and Kirkland & Ellis LLP.