Semco Energy acquires Illinois construction company

Semco Energy Inc. said May 15 that it as acquired KLP Construction Co. Inc. as well as certain assets of Lake Area Utilities Inc.

Semco said the acquisitions advance the company’s goal to develop a national full-service construction company specializing in work for the utility and telecommunications industries.

KLP Construction is based in East Peoria, Ill., and provides natural gas pipeline and fiber optic construction services primarily for the utility industry.

“KLP Construction brings communications infrastructure experience to Semco Energy, plus additional construction opportunities in the upper Midwest and expands our presence in the region,” said William Johnson, chairman and chief executive officer of Semco Energy.

“This fits our stated goal of making strategic acquisitions that will directly contribute toward enhancing shareholder value,” Johnson said.

Semco said that KLP is expected to generate about $5 million in revenue in 2000. KLP will become part of Iowa Pipeline Associates Inc., which is owned by Semco Energy Ventures, a Semco Energy subsidiary.

Kevin Poque, vice president of KLP, have been named vice president of the Illinois division of Iowa Pipeline Associates.

The acquired assets of Lake Area Utilities involve specialized underground cable/fiber construction equipment. Semco said those assets will provide Iowa Pipeline Associates with growth potential through fiber/cable construction and horizontal drilling projects in Iowa, Minnesota and Nebraska.

In Alaska, Semco recently purchased Enstar Natural Gas Co. and Alaska Pipeline Co.