ATLANTA (

TheStreet

) --

AGL Resources

( AGL) will buy

Nicor

(GAS)

in a cash and stock deal with an enterprise value of $3.1 billion.

The merger creates one of the top U.S. natural gas distributors.

Under the deal, Nicor shareholders will receive $21.20 in cash and 0.8382 of an AGL share, valuing Nicor shares at $53 each. The equity value of the deal is $2.4 billion.

Nicor shares closed Monday at $46.76. AGL shares closed at $37.13.

Once the acquisition closes, AGL shareholders will own about 67% of the combined company while Nicor shareholders will own about 33%.

The combined company will have about $5.1 billion in annual revenue and earnings before interest, taxes, depreciation and amortization of $1.1 billion.

It will operate seven regulated natural gas distribution companies serving about 4.5 million customers in Illinois, Georgia, New Jersey, Virginia, Florida, Tennessee and Maryland.

AGL said the deal will be neutral to its earnings in the first full year following the close of the transaction and accretive after that.

"This is an exciting transaction for both AGL Resources and Nicor. Together we will establish a platform for growth that is superior to what either company could achieve on its own," said John Somerhalder II, AGL Resources' chairman, CEO and president, in a statement Tuesday.

-- Written by Joseph Woelfel

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Joseph Woelfel

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