ERTH Corporation announced a merger with West Coast Huron Energy Inc. this morning.
INGERSOLL - ERTH Corporation and West Coast Huron Energy Inc. otherwise known as Goderich Hydro are merging.
The announcement was made this morning and the decision was made at the last ERTH Corporation shareholders meeting last Thursday. The shareholders include eight municipalities in South Western Ontario including The Town of Ingersoll. ERTH Corporation provides all of the hydro for the town.
The merger will take place between Erie Thames Powerlines Corporation and West Coast Huron Energy Inc. It means the Town of Goderich will receive shares in ERTH Corporation and have a seat on the board of directors.
The merger is happening at a time when the Provincial government is encouraging local distribution companies to consolidate. In a press release today the companies stated this will not result in any job losses because of the merger. Efficiencies will be found over time through attrition, eliminating duplicate back office systems.
President and CEO of ERTH Corporation Chris White says this is a great deal for both companies.
"ERTH Corporation and Goderich Hydro have shared a successful long standing relationship working closely together for over 15 years. We share many of the same values and corporate culture which make for a smooth transition. Our two companies coming together will position us well as a stronger regional organization well positioned for the future. "
Both companies still need to do some final due diligence and negotiations before the deal is finalized. Once that is complete the merger will be submitted to the Ontario Energy Board for regulatory approval, which could take a few months to receive. It is anticipated that a completed merger would not happen until early 2018.
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