Constellation Energy to Expand Residential Customer
Base, Broaden Geographic Footprint with Acquisition of MXenergy
BALTIMORE--(BUSINESS WIRE)-- Constellation
Energy (NYSE: CEG), a leading competitive energy provider, today
announced it has signed a definitive agreement to acquire 100 percent of MXenergy, a Connecticut-based
supplier of natural gas and electricity with more than half a million customers
in North America.
The
proposed transaction to purchase MXenergy for $175
million, subject to normal adjustments, broadens Constellation
Energy's mass market presence to include the 15 states and two Canadian
provinces where MXenergy supplies gas and
electricity to more than 540,000 residential and small commercial customers.
"MXenergy provides us with a broad platform that
supplements our growing retail business, particularly in the residential
market, at a time when customers are choosing energy suppliers in significant
numbers," said Mark Huston, head of Constellation
Energy's retail business.
"By
combining forces with Constellation, we strengthen our ability to provide
customers with quality service and innovative products that can help them
manage their energy needs," said Jeffrey Mayer,
president and chief executive officer of MXenergy.
MXenergy has more than 200 employees and is headquartered in
Stamford, Conn.,
with a major operational office in Houston,
Texas, and call-center operations in Annapolis
Junction, Md.
Huston
said the acquisition positions Constellation Energy to exceed 1
million mass market customers by the end of 2011. Constellation Energy
has been steadily growing its residential base the past year by offering
electric choice to residential customers in Maryland,
Washington, D.C.
and parts of New Jersey
and Illinois.
The
definitive agreement signed by MXenergy and Constellation
Energy is scheduled to close in the third quarter, subject to required
regulatory approvals and approval by MXenergy
shareholders.
Constellation
Energy demonstrates its commitment to environmental stewardship and a
clean energy future by delivering innovative energy solutions that help
customers control energy use, reduce greenhouse gas
emissions and utilize sources of renewable energy.
MXenergy is one of the country's largest independent
suppliers of energy to mass market customers throughout the
United States and Canada.
It was founded in 1999 and received major financial support from a number of
private equity investors, most notably Denham Capital Management LP,
and Charterhouse Group, Inc. MXenergy
was the first retail marketer to provide carbon offsets for its customers
through the planting of a certified pine forest in Georgia.
BofA
Merrill Lynch acted as financial adviser to MXenergy
on the transaction, and Duff &
Phelps delivered a fairness opinion to the MXenergy
Board of Directors.
About MXenergy
MXenergy is one of the fastest growing retail
natural gas and electricity suppliers in North
America, serving over 500,000 customers in 42 utility territories
in the United States
and Canada. For over 11
years, the company has provided millions of customers with a choice in how
they purchase energy to run their homes and businesses. Founded in 1999 to
provide natural gas and electricity to consumers in deregulated energy
markets, MXenergy helps residential customers and small
business owners control their energy bills by providing both fixed and
variable rate plans MXenergy is committed to best practices in
environmental conservation, supporting local communities through various
outreach programs and is a member of the Chicago Climate Exchange. For more
information about MXenergy please visit www.mxenergy.com.
About Constellation
Energy
Constellation
Energy (www.constellation.com) is a leading competitive supplier of
power, natural gas and energy products and services for homes and businesses
across the continental United
States. It owns a diversified fleet of generating units, totaling
approximately 12,000 megawatts of generating capacity, and is a leading
advocate for clean, environmentally sustainable energy sources, such as solar
power and nuclear energy. The company delivers electricity and natural gas
through the Baltimore Gas and
Electric Company (BGE), its regulated utility in Central
Maryland. A FORTUNE 500 company headquartered in Baltimore,
Constellation Energy had revenues of $14.3 billion
in 2010.
Constellation
Energy
Media:
Maureen Brown, 410-470-7433
or
Investors:
Sandra Brummitt, 410-470-6440
Source: Constellation Energy Group