DELAWARE INC

Chesapeake completes a $59.2M merger

Jeff Mordock
The News Journal
Michael P. McMasters

Chesapeake Utilities Corp. completed its $59.2 million purchase of Gatherco Inc., an operator of natural gas lines.

Dover-based Chesapeake will merger Gatherco into its Ohio subsidiary, Aspire Energy. Aspire will use the Gatherco's assets to provide Ohio residents with natural gas services, processing and transportation services.

Gatherco, based in Orrville, Ohio, was created in 1997 when it acquired Columbia Gas Transmission's Ohio natural gas gathering systems. The company has operations in 40 counties throughout the states, including 16 gathering systems and over

"We are pleased with how efficiently the merger was completed. It is a great strategic win for the management and customers of both companies and is projected to generate accretive earnings in the first full year of operation following the merger," said Michael P. McMasters, president chief executive officer of Chesapeake Utilities, in a released statement.

The transaction was announced on February 2 and approved by Gatherco shareholders on March 20.

Contact Jeff Mordock at (302) 324-2786 or jmordock@delawareonline.com.