Constellation Energy Doubles Residential Customer Base With Acquisition of MXenergy Residential and Small Business Platform
Constellation Energy (NYSE: CEG), a leading competitive energy provider,
announced today that it has closed its acquisition of MXenergy, a
Connecticut-based supplier of natural gas and electricity with
approximately 540,000 customers in North America.
The $175 million transaction (subject to normal adjustments), announced
May 12, broadens Constellation Energy's mass market presence to include
the 15 states and two Canadian provinces where MXenergy supplies gas and
electricity to residential and small commercial customers. The
acquisition gives Constellation Energy approximately 900,000 residential
customers, doubling its previous total.
"The purchase of MXenergy is a significant milestone in our strategy to
be a top leader in the burgeoning residential retail market," said Mark
Huston, head of Constellation Energy's retail business. "This expanded
residential and small business footprint propels us toward our goal of 1
million customers this year and positions the Constellation retail
family to become the trusted energy partner for thousands of new
Chaitu Parikh, president of MXenergy, said, "We look forward to
combining forces with Constellation and strengthening our ability to
provide customers with quality service and innovative products to help
them manage their energy needs."
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.
With the close of the MXenergy transaction, Constellation Energy now
ranks among the top 10 residential energy providers in the country. The
transaction is the company's second mass markets acquisition in the past
month; on May 27, Constellation Energy closed its purchase of StarTex
Power, an award-winning Houston retail electric provider acclaimed for
its service to approximately 170,000 customers.
Constellation Energy has been steadily growing its residential base by
offering customers a choice in electric, gas and energy services in
Maryland, and electricity supply to customers in Washington, D.C., and
parts of New Jersey, Illinois and Pennsylvania.
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.
is one of the fastest growing retail natural gas and electricity
suppliers in North America, serving more than 500,000 customers in 42
utility territories in the United States and Canada. For more than 11
years, the company has provided 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
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
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.
Source: Constellation Energy
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