Black Hills Corporation (BKH) entered a merger agreement on August 19, 2025, to acquire Northwestern Energy Group Inc. (NWE) in an all-stock deal valued at $6.96 billion.
NorthWestern shareholders will receive a fixed exchange ratio of 0.98 shares of Black Hills for each share of NorthWestern they own at the close of the transaction. This represents an implied value of $59.14 per share, which is at a premium of 7.67% from the stock’s last close.
NorthWestern Energy is a regulated utility that provides electricity and natural gas to about 800,000 customers across Montana, South Dakota, Nebraska, and Yellowstone National Park.
Black Hills is a regulated utility company based in Rapid City, South Dakota, that provides electricity and natural gas to about 1.35 million customers across Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming, supported by its power generation, transmission, and extensive gas infrastructure.
After the merger, Black Hills shareholders will own about 56% of the combined company, while NorthWestern shareholders will own about 44%.
The combined company will serve about 2.1 million customers across eight neighboring states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.
NorthWestern Chief Executive Brian Bird will become CEO of the combined company. Marne Jones, Black Hills’ Chief Utility Officer, will be Chief Operating Officer. Crystal Lail, NorthWestern’s Chief Financial Officer, will remain CFO, and Kimberly Nooney, Black Hills’ CFO, will take on the role of Chief Integration Officer. Linn Evans will stay on as CEO of Black Hills until the deal closes, after which he will retire.
The combined company’s 11-member board will consist of six directors appointed by Black Hills and five by NorthWestern, including CEO Bird and NorthWestern board chair Linda Sullivan. Steven Mills, current chair of the Black Hills board, will serve as chair of the combined company’s board.
The new company will have its headquarters in Rapid City, South Dakota. The combined company will adopt a new name and ticker symbol, which will be announced before the transaction closes, which is expected in 12 to 15 months.
NorthWestern Energy was advised by Greenhill, a Mizuho affiliate, on financial matters and by Morgan, Lewis & Bockius on legal matters. Black Hills received financial advice from Goldman Sachs and legal counsel from Faegre Drinker Biddle & Reath.
Black Hills is acquiring Northwestern at 14.97 times its earnings.
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Editor’s Note: Baranjot Kaur contributed to this article