Direct Energy buys two New York power retailers for $110-million
by Canadian Manufacturing Daily Staff
Deal will see Direct Energy energy take on retailers Energetix, NYSEG Solutions
Houston—Direct Energy has reached an agreement to acquire the upstate New York-based energy retailers Energetix, Inc., and NYSEG Solutions, Inc., in a deal worth more than $110-million.
Based in Rochester and Binghamton, N.Y., and both wholly owned subsidiaries of Iberdrola USA, Energetix and NYSEG Solutions supply retail electricity and natural gas to residential and commercial customers in New York and Pennsylvania.
The companies operate as a single retail organization, according to Direct Energy, marketing under the Energetix and NYSEG Solutions brands.
The addition of Energetix and NYSEG Solutions is the latest step in Direct Energy’s continued strategic growth of its North American downstream business in competitive retail markets.
Earlier this year, Direct Energy announced the addition of 280,000 new residential and small business customers to its U.S. Northeast customer base following the acquisition of Vectren Source, a supplier of natural gas in Ohio, Indiana and New York.
In addition, in 2012 the company entered a total of 22 new markets while achieving significant organic growth in the U.S. Northeast.
The transaction is subject to regulatory review and is expected to close in the third quarter of 2012.