NRG Energy, Inc. (NYSE: NRG) announced a definitive agreement to acquire Energy Plus Holdings LLC, a Philadelphia-based retail electricity and natural gas provider for $190 million in cash. Through its exclusive marketing partnerships with leading loyalty program providers, Energy Plus has a proven ability to successfully enroll attractive customer groups and will provide NRG an effective retail platform to expand its customer services and products in multiple retail markets, particularly the northeast.
The transaction will add immediate scale to NRG’s expanding retail customer base in the Northeast as more than 90% of Energy Plus customers are in states such as New York, Connecticut, Pennsylvania, New Jersey, Maryland and Illinois. Energy Plus also sells electricity in Texas and natural gas in New York and New Jersey.
“As we launch our retail expansion in the Northeast, Energy Plus adds a highly effective, absolutely unique and essentially non-replicable sales chain to our successful retail energy platform,” said David Crane, NRG President and Chief Executive Officer. “Energy Plus’ direct marketing expertise, exclusive loyalty program partnerships and marketing platform, leveraged with the resources of Reliant and Green Mountain and aligned with the wholesale support provided by NRG’s generation assets, creates a potent retail combination that is well differentiated from the product and service offerings of our competitors.”
With Energy Plus’ leading rewards programs, Reliant’s strength providing smart energy solutions and Green Mountain’s position as the nation’s premier clean energy provider, NRG will offer three distinct retail value propositions. As NRG believes the power industry is entering an era of greater customer choice both in terms of what type of energy people use and who they buy their energy from, the breadth of the Company’s retail operations will enable the Company to become the leading energy provider of choice across competitive electricity markets.
“We believe NRG is the most visionary company in our industry, and are thrilled to become part of the NRG family,” said Richard Vague, Energy Plus Chairman and Chief Executive Officer. “Our employees, partners, customers, and community will benefit greatly from NRG’s investment in the existing Energy Plus business, and from the new, innovative products and services we will collectively bring to the market,” said Kevin Kleinschmidt, Energy Plus President and Chief Operating Officer.
Energy Plus has been one of the fastest-growing energy companies in the United States since it was founded in 2007, driven by its successful rewards programs offered through the company’s rapidly growing network of almost 100 industry-leading partners and associations. With its superior mix of quality service, energy choices and ongoing rewards programs combined with the support of NRG, Energy Plus is poised to continue its tremendous growth serving customers and as a valuable member of the Philadelphia business community.
The transaction is subject to customary closing conditions and regulatory approvals, including from the U.S. Department of Justice (Hart Scott Rodino) and the Federal Energy Regulatory Commission as well as other regulatory notices and closing is expected to occur in October.