Oct. 29, 2009 (PR Newswire) -- DOVER, Del., Oct. 29 /PRNewswire-FirstCall/ -- Chesapeake Utilities Corporation (NYSE: CPK) and Florida Public Utilities Company (NYSE AMEX: FPU) announced today the completion of their planned merger, effective yesterday, October 28, 2009. Florida Public Utilities is now a wholly owned subsidiary of Chesapeake.
The combination creates a combined energy company serving 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. Chesapeake and Florida Public Utilities (FPU) recognized $291.4 million and $168.5 million in revenues, respectively, and $13.6 million and $3.5 million in net income, respectively, for 2008.
Pursuant to the merger, FPU shareholders will receive 0.405 shares of Chesapeake common stock in exchange for each outstanding share of Florida Public Utilities. Chesapeake stock will continue to trade on the New York Stock Exchange under the ticker symbol "CPK". FPU shareholders holding physical stock certificates will receive share exchange instructions for their Chesapeake shares in the next few weeks.
"Today marks the beginning of an exciting new era in Chesapeake history," said John R. Schimkaitis, President and Chief Executive Officer of Chesapeake. "We believe this merger is a great strategic fit for both companies and we are pleased with how quickly the merger was consummated."
Effective yesterday, John R. Schimkaitis becomes the Chairman and Chief Executive Officer of Florida Public Utilities in addition to serving as President and Chief Executive Officer of Chesapeake. Jack English, former Chairman, President and Chief Executive Officer of FPU, will stay on as a consultant and assist in the integration effort. Post-merger, George M. Bachman and Charles L. Stein will continue to serve as Chief Financial Officer and Chief Operating Officer, respectively, of FPU.
Pursuant to the merger agreement between Chesapeake and FPU, two members of the FPU Board of Directors have been appointed to the Chesapeake Board of Directors. These two new board members are Dennis S. Hudson, III and Paul L. Maddock, Jr., increasing the number of Chesapeake directors to 12. Background on the two new directors is provided below:
-- Dennis S. Hudson, III, 54, is the Chairman and Chief Executive Officer
of Seacoast National Bank (Nasdaq: SBCF), and Seacoast Banking
Corporation of Florida, which has offices from Orlando to Palm Beach,
Florida. Hudson has been a member of both organizations' Boards of
Directors since 1983. He has held various positions in the banks,
including, most recently, President and Chief Executive Officer, and
prior to that, Executive Vice President and Chief Operating Officer.
