Rapid City, S.D., utility Black Hills Corp. announced Thursday it has promoted Richard W. Kinzley to vice president of strategic planning and development. Maurice Klefeker, who formerly led dealmaking, left in August to pursue other interests. Kinzley has been a member of the corp dev team for a decade, and
according to the company, has played a key role in many of the company's major acquisitions and divestitures.
Those included Black Hill's February purchase of electric operations in Colorado and gas utilities in Colorado, Kansas, Nebraska and Iowa from Aquila Inc. for $940 million in cash and the sale of seven power plants in April to Australia's Hastings Funds Management Ltd. and IIF BH Investment LLC, a unit of an investment entity advised by J.P. Morgan Asset Management, for $840 million.
Black Hills hasn't always succeeded in winning its target. In 2005 it tried to buy Sioux Falls, S.D., utility NorthWestern Energy Corp. for $33 per share, but was beat on price by Australia's Babcock & Brown Infrastructure Ltd. The deal ultimately fell through, though, after Montana regulators expressed concern that the high price Babcock & Brown was paying would force NorthWestern to cut service or raise rates. Two months later, the deal was scrapped. That led to speculation that Black Hills might try to buy NorthWestern again.
Could another go-around with NorthWestern be on Kinzley's agenda? With Black Hills predicting lower profits from continuing operations this year and its stock near its 52-week low, another acquisition might be just the ticket. -
Claire Poole
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