The state’s only franchised gas utility and largest propane distributor has a new owner after a New York-based infrastructure fund manager received approval from the state Public Utilities Commission.

Hawaii Gas’ ownership was transferred to an affiliate of Argo Infrastructure Partners LP as a result of that company’s acquisition of another New York firm, Macquarie Infrastructure Holdings LLC. The deal, which was first announced in June 2021, was given the green light from the PUC on June 29 of this year. Hawaii Gas announced the completion of the transaction July 21.

Macquarie, which acquired Hawaii Gas in 2006, announced its intention in October 2019 to actively pursue strategic alternatives including a sale of Hawaii Gas or its operating businesses as a means of unlocking value for shareholders.

That process was held up by the COVID-19 pandemic, but on July 14, 2021, Macquarie announced that Hawaii Gas would be acquired by Argo, subject to approval by the PUC and other customary conditions. When that deal was announced, it was disclosed that the value of the transaction, including about $200 million in debt being assumed, was $514 million. Final numbers for the deal have not been released.

Hawaii Gas, which was founded in 1904 and has 350 employees, said the ownership change is expected to be seamless for customers and will not affect its employees, wages or union relationship.

The company’s headquarters, local management and Hawaii-based members of its board of directors will not change. Hawaii Gas’ assets, including the Waihonu Solar Farm, also have been acquired by Argo. Hawaii Gas had total gross annual sales for 2021 of $231.3 million.

“This decision paves the way for Hawai‘i Gas to accelerate its renewable energy plans and continue our pioneering work with renewable natural gas and hydrogen, both critical clean energy sources for our future,” Hawaii Gas President and CEO Alicia Moy said in a statement.

“As we begin a new chapter with Argo marking the 118th year of our company, we also express our appreciation for the strong and steady support Hawai‘i Gas has received from Macquarie Infrastructure Holdings, LLC, over the past 16 years.”

Argo said that under its ownership Hawaii Gas will continue to focus on initiatives aimed at reducing greenhouse gas emissions.

“Argo is pleased with the decision by the PUC and looks forward to having Hawai‘i Gas join its portfolio of companies and supporting its efforts to improve sustainability and reduce its carbon footprint,” Argo Managing Director Richard Klapow said in a statement. “Argo fully supports the company’s clean energy plan and intends to provide access to capital to execute its clean energy transformation consistent with Hawaii’s climate objectives, all while continuing to provide safe and reliable energy services to its customers.”

Argo manages over $5 billion in assets on behalf of its investors.