NRG Energy Closes Multiple Strategic Acquisitions
April 01 2014 - 11:53AM
Business Wire
— Acquisition of Edison Mission Energy and
Dominion’s competitive retail electricity business achieves
progress across all three components of NRG’s core strategy —
NRG Energy, Inc. (NYSE: NRG) has completed its previously
announced strategic acquisitions of substantially all the assets of
Edison Mission Energy (EME) and the competitive retail electricity
business of Dominion Resources, Inc. (NYSE: D) for $2,635 million
and $165 million, respectively, both excluding transaction
adjustments for cash and working capital. With the closing of these
two transactions, NRG advances its overall strategy of enhancing
its generation fleet, expanding its retail business and growing its
green portfolio.
Enhancing Generation
The addition of EME’s nearly 8,000 megawatts (MW) brings NRG’s
total fleet to more than 53,000 MW of generating capacity –
the second-largest in the US. The addition of EME’s wind capacity,
combined with NRG’s existing wind and solar facilities, further
diversifies the company’s renewable portfolio.
Expanding Retail
The acquisition of Dominion’s competitive retail electricity
business will add, after customary transitions, more than 500,000
customer accounts to NRG’s retail footprint by the end of 2014,
doubling NRG’s northeast retail presence across eight states and
enhancing its leading position in Texas by adding the Cirro Energy
franchise. The acquisition gives NRG a substantially larger
customer platform in markets in which NRG is confident that it can
enhance the depth and breadth of customer relationships through the
deployment of customer-friendly services built around emerging
energy technologies.
Growing Green
The closing of EME and Dominion’s retail electric business comes
on the heels of NRG’s acquisition of Roof Diagnostics Solar (RDS),
announced on March 27. NRG acquired RDS, one of largest solar sales
and installation companies in America, to support the company’s
strategy to empower its customers who want to control their own
energy destiny through clean self-generation.
“Closing this trio of acquisitions in the past week materially
enhances our capabilities and our economies of scale in all of our
key business areas,” said David Crane, President and CEO of NRG.
“By advancing across the full range of our overall company
strategy, we are giving consumers greater access to clean energy
and individual control over their energy future.”
About NRG
NRG is leading a customer-driven change in the U.S. energy
industry by delivering cleaner and smarter energy choices, while
building on the strength of the nation’s largest and most diverse
competitive power portfolio. A Fortune 500 company, we create value
through reliable and efficient conventional generation while
driving innovation in solar and renewable power, electric vehicle
ecosystems, carbon capture technology and customer-centric energy
solutions. Our retail electricity providers – Reliant, Green
Mountain Energy, Cirro Energy, Energy Plus and NRG Residential
Solutions – serve almost 3 million residential and commercial
customers throughout the country. More information is available at
www.nrgenergy.com. Connect with NRG Energy on Facebook and follow
us on Twitter @nrgenergy.
NRG Safe Harbor Disclosure
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such forward-looking
statements are subject to certain risks, uncertainties and
assumptions and include NRG’s expectations regarding the announced
acquisitions and forward-looking statements typically can be
identified by the use of words such as “will,” “expect,” “believe,”
and similar terms. Although NRG believes that its expectations are
reasonable, it can give no assurance that these expectations will
prove to have been correct, and actual results may vary materially.
Factors that could cause actual results to differ materially from
those contemplated above include, among others, general economic
conditions, hazards customary in the power industry, competition in
wholesale and retail power markets, the volatility of energy and
fuel prices, failure of customers to perform under contracts,
changes in the wholesale power markets, changes in government
regulation of markets and of environmental emissions, and our
ability to achieve the expected benefits of the announced
acquisitions. NRG undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The foregoing review of factors that
could cause NRG’s actual results to differ materially from those
contemplated in the forward-looking statements included in this
news release should be considered in connection with information
regarding risks and uncertainties that may affect NRG’s future
results included in NRG’s filings with the Securities and Exchange
Commission at www.sec.gov.
NRGMedia:Karen Cleeve, 609.524.4608David Knox,
832.357.5730orInvestors:Chad Plotkin, 609.524.4526Daniel Keyes,
609.524.4527
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