NEW YORK ( TheDeal) --Rapid City, S.D., utility Black Hills (BKH - Get Report) said Sunday it agreed to acquire SourceGas Holdings from investment funds managed by Alinda Capital Partners and General Electric  (GE - Get Report) unit GE Energy Financial Services for $1.89 billion, expanding its customer base.

The price includes a reimbursement of an estimated $200 million in capital expenditures through closing and $720 million in debt assumption. Black Hills said the effective purchase price is $1.74 billion taking into account $150 million in tax benefits resulting from the transaction.

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