IBERDROLA ANNOUNCES SALE OF NEW YORK UNREGULATED RETAIL COMPANIES TO DIRECT ENERGY FOR $110 2 MILLION
- The sale, subject to regulatory approvals, is in line with Iberdrola’s strategy of divesting non-core assets
Iberdrola SA today announced agreement by which Iberdrola USA will sell to Direct Energy the 100% of its unregulated gas and electricity retail companies Energetix and NYSEG Solutions, both based in New York State for $110.2 million.
The two companies being sold provide electricity, natural gas and energy related products and services to residential, small business, large commercial and industrial customers.
As of the end of May 2012 Energetix and NYSEG Solutions supplied electricity and gas to 247,500 customers.
The transaction involves the sale to Direct Energy, U.S. subsidiary of Centrica, of 100% of the shares indirectly held by Iberdrola, through its wholly-owned subsidiary Iberdrola USA, in Energetix and NYSEG Solutions. The transaction is subject to the applicable regulatory approvals.
This transaction is within the framework of Iberdrola’s strategy of divesting non-core businesses, and follow a previous transaction in February 2012 whereby Iberdrola USA agreed to sell The Energy Network, LLC, the holding company for TEN Companies, Hartford Steam Company and CNE Power I, LLC., to New Jersey-based Energenic-US, LLC.
Notes to Editors
- Iberdrola USA, a subsidiary of global energy leader Iberdrola, S.A., is an energy services and delivery company serving about 2.7 million customers throughout upstate New York and New England. Its principal subsidiaries are New York State Electric & Gas, Rochester Gas and Electric, and Central Maine Power.
- Direct Energy is one of North America’s largest competitive energy suppliers of electricity, natural gas and related services. With approximately 6,000 employees, they are active in both upstream production (electricity and natural gas) and downstream delivery. Direct Energy operates in 10 Canadian provinces and 46 US states plus the District of Columbia, with more than six million customer relationships.