Centrica has announced that its North American subsidiary, Direct Energy, has signed an agreement to acquire Strategic Energy, a subsidiary of Great Plains Energy, for a total cash consideration of $300 million.
The transaction is debt free and includes a significant amount of working capital which will be subject to a subsequent true-up. The transaction is subject to regulatory approval and is expected to close in June 2008.
According to Centrica, this acquisition is an excellent fit with Direct Energy’s current business both geographically and strategically and enables it to accelerate its growth plans through immediate scale benefits in excess of $15 million per annum, following initial one-off integration costs and further cross-selling opportunities in a competitive commercial and industrial market.
Sam Laidlaw, CEO of Centrica, said: Acquiring Strategic Energy is in line with our strategy of building on our growth platforms. It immediately strengthens our position in the important North American commercial and industrial market and, together with our recent acquisition of Rockyview Energy, it maintains Centrica’s ongoing commitment to growing this important part of our business.