Allete receives $520M bid for Florida water unit

Duluth-based Allete has been offered $520 million for its Florida Water Services Inc. unit by the Florida Governmental Utilities Authority (FGUA).

In a filing with the SEC Thursday, Allete said that the transaction could close this year. If the purchase price remains at $520 million, the deal would generate about $275 million in cash for the parent company.

An exclusivity agreement on the sale of Florida Water Services between Allete and the FGUA expired Jan. 11, but Allete kept talking to the Authority while also entertaining offers from other unnamed interested parties.

Allete is a diversified company. Its oldest unit is Minnesota Power, which provides electricity in northern Minnesota and Wisconsin. Other activities include the second-largest automobile auction network in North America, water utilities in Florida and North Carolina and real estate holdings it manages in Florida.