May 12, 2011
Constellation Energy to Expand Residential Customer Base, Broaden Geographic Footprint with Acquisition of MXenergy
Constellation Energy (NYSE: CEG), a leading competitive energy provider, today announced it has signed a definitive agreement to acquire 100 percent of MXenergy, a Connecticut-based supplier of natural gas and electricity.
BALTIMORE, MD – Constellation Energy (NYSE: CEG), a leading competitive energy provider, today announced it has signed 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 North America.
The proposed transaction to purchase MXenergy for $175 million, subject to normal adjustments, broadens Constellation Energy’s mass market presence to include the 15 states and two Canadian provinces where MXenergy supplies gas and electricity to more than 540,000 residential and small commercial customers.
“MXenergy provides us with a broad platform that supplements our growing retail business, particularly in the residential market, at a time when customers are choosing energy suppliers in significant numbers,” said Mark Huston, head of Constellation Energy’s retail business.
“By combining forces with Constellation, we strengthen our ability to provide customers with quality service and innovative products that can help them manage their energy needs,” said Jeffrey Mayer, president and chief executive officer of MXenergy.
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.
Huston said the acquisition positions Constellation Energy to exceed 1 million mass market customers by the end of 2011. Constellation Energy has been steadily growing its residential base the past year by offering electric choice to residential customers in Maryland, Washington, D.C. and parts of New Jersey and Illinois.
The definitive agreement signed by MXenergy and Constellation Energy is scheduled to close in the third quarter, subject to required regulatory approvals and approval by MXenergy shareholders.
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.
About Constellation Energy
Constellation Energy 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. Learn more online: www.constellation.com.
MXenergy is one of the fastest growing retail natural gas and electricity suppliers in North America, serving over 500,000 customers in 42 utility territories in the United States and Canada. For over 11 years, the company has provided millions of 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 markets, MXenergy 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 visit www.mxenergy.com.