Unitil (UTL) said Tuesday that it signed a definitive deal to acquire Maine Natural Gas from Avangrid Enterprises for $86 million.

The company estimates that Maine Natural Gas and Unitil's recently acquired Bangor Natural Gas will serve communities representing more than 40% of Maine's total population. The acquisition is expected to be accretive to earnings over the long-term and contribute to its targeted long-term EPS growth of 5% to 7%, Unitil said.

Unitil said it has received committed debt financing from Scotiabank to fund the acquisition and expects to close the transaction by the end of the year, subject to the Maine Public Utilities Commission's approval.