MERRILLVILLE, Ind. (AP) — NiSource Inc. will sell a couple New England-based subsidiaries to Unitil Corp. in a deal valued at $185 million.

NiSource announced Tuesday that Unitil will purchase Northern Utilities Inc. and Granite State Gas Transmission Inc. for $160 million and roughly $25 million in natural gas storage inventory and other working capital.

Northern Utilities serves 52,000 customers in Maine and New Hampshire. Granite runs 86 miles of pipeline in the same states and provides natural gas transmission for Northern.

Leaders of New Hampshire-based Unitil say the deal will increase their customer base by 40 percent and strengthen their gas utility operations.

The sale lets NiSource focus more on its long-term growth plan. NiSource had purchased the companies in 1999.

Posted 2/19/2008