Peoples Natural Gas, a Pittsburgh, Pa.-based natural gas distribution company, said it has agreed to acquire Equitable Gas Co., EQT Corp.'s distribution business in Pennsylvania, West Virginia and Kentucky.
EQT will receive $720 million cash and some additional assets, Peoples said. People said the deal, which is subject to numerous regulatory approvals, is expected to close in the second half of 2013.
Peoples and a sister company, Peoples TWP, provide natural gas to about 420,000 homes and businesses in 18 western Pennsylvania counties. SteelRiver Infrastructure Fund North America owns Peoples.
Equitable Gas provides natural gas to about 275,000 residential, commercial and industrial customers in southwestern Pennsylvania, north central West Virginia and eastern Kentucky.