BALTIMORE, MD - Constellation Energy (NYSE: CEG), a leading competitive energy provider, today announced it has signed a definitive merger agreement to acquire 100 percent of StarTex Power, a Houston retail electric provider with approximately 170,000 customers.
The purchase of StarTex Power for $142.5 million in an all-cash transaction gives Constellation Energy a foothold in the Texas mass market, the most active of all residential markets in the country, and is a key element of the company's broader strategy to be a residential sector market leader.
"StarTex Power brings award-winning service for residential and commercial customers to Constellation Energy's growing residential platform," said Mark Huston, head of Constellation Energy's retail business. "The StarTex Power acquisition strengthens our commitment to choice and innovation for customers, continues Constellation Energy's systematic retail expansion, and brings an employee base that has helped the company win significant awards from rating companies and the Better Business Bureau." Bob Zlotnik, president and chief executive officer of StarTex Power, said, "We are thrilled to marry our exceptional customer service model with Constellation Energy's brand of trusted service and price protection to extend our customer service expertise beyond the Texas border."
StarTex Power is the sole retail electric provider to be awarded the 2010 and 2011 Better Business Bureau Pinnacle Award and was named the #1 Fastest Growing Energy Company in 2009 by Inc. Magazine. StarTex Power has also been ranked among the top 10 Best Places to Work by the Houston Business Journal for four consecutive years.
The addition of StarTex Power's residential and commercial customers will move Constellation a step closer to its goal of 1 million mass market customers by the end of 2011. Further, the acquisition gives Constellation a leading presence in the most vibrant competitive market in the nation - Texas. Approximately 5.4 million residential customers in the Texas ERCOT market shop for an electricity provider, the highest in the nation. Other top 10 competitive energy shopping states include Ohio, New York, Pennsylvania, Maryland and New Jersey.
The StarTex Power acquisition comes two weeks after Constellation Energy announced a definitive agreement to acquire 100 percent of MXenergy, a Connecticut-based supplier of natural gas and electricity with more than half a million customers in 15 states and two provinces in Canada.
In addition to serving as an energy provider, 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. Credit Suisse acted as exclusive financial adviser to StarTex Power on the transaction.