Chesapeake Utilities completes merger with Florida Public Utilities

By Lisa Kerner

Charlotte, N.C., Oct. 29 - Florida Public Utilities Co. became a wholly owned subsidiary of Chesapeake Utilities Corp. after the companies completed their previously announced merger on Wednesday.

Chesapeake and Florida agreed in April to combine in an all-stock transaction valued at roughly $74 million.

Florida shareholders will receive 0.405 of a share of Chesapeake common stock for each share of Florida they hold.

The combined energy company has approximately 200,000 customers - 117,000 natural gas, 48,000 propane and 31,000 electric customers - in the Mid-Atlantic and Florida markets with assets totaling approximately $595 million, according to a Chesapeake news release.

John R. Schimkaitis, president and chief executive officer of Chesapeake, is now also the chairman and CEO of Florida.

Jack English, Florida's former chairman, president and CEO, will remain as a consultant and assist in the integration effort, the release said.

George M. Bachman and Charles L. Stein will remain with Florida as chief financial officer and chief operating officer, respectively.

Two members of Florida's board of directors, Dennis S. Hudson III and Paul L. Maddock Jr., were appointed to Chesapeake's board.

Chesapeake is a Dover, Del.-based diversified utility company.

Florida Public Utilities distributes natural gas, propane and electricity to residential, commercial and industrial customers in Florida. The company is based in West Palm Beach, Fla.

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