Emera has agreed to sell its wholly owned subsidiary New Mexico Gas Company to Bernhard Capital Partners for about US$1.3 billion, including debt.

New Mexico-gas is an Albuquerque-based utility firm. The operating company is one of several utilities in Canada, the U.S., and the Caribbean that Halifax-based Emera owns.

The proposed deal is slated to close in late 2025 and calls for Bernhard to assume US$500 million in liabilities.

“This transaction strengthens Emera’s balance sheet, supports our ambitious capital plan and reinforces our strategic decision to optimize our portfolio and reallocate capital to our highest growth markets to drive long-term value for our shareholders,” said Scott Balfour, president and CEO of Emera, in a news release.

“New Mexico Gas is a strong regulated utility with a customer-focused team. We’re proud of the work we have done together over the past eight years to drive customer growth and enable nearly US$800 million in strategic capital investments to expand and maintain a safe, reliable system that will serve New Mexicans for decades to come.”

Baton Rouge, La.-based Bernhard is a services and infrastructure-focused on private-equity management.

Balfour told CBC that the sale is part of Emera’s strategy to shed some assets as an economical approach to raising money in today’s high interest-rate environment. CBC reported that the the company was aiming to raise 15% of its $9-billion goal and has surpassed that mark through the pending divestment of Emera and sales of shares in Labrador Island Link earlier this year.

Emera’s holdings include Nova Scotia Power, a regulated private electrical utility that has about 525,000 customers. Balfour sidestepped CBC’s question as to whether Emera would consider selling Nova Scotia Power, among other utility holdings.

But he indicated that Emera wants to retain Nova Scotia Power.

“Nova Scotia is our home and Nova Scotia Power is one of our core utilities,” he told CBC.

Photo: New Mexico Gas Company