PRINT | CLOSE WINDOW

Iberdrola to sell Energetix, NYSEG Solutions for $110M

By THOMAS ADAMS - 7/13/2012 10:43:22 AM

Iberdrola S.A. will sell energy retail subsidiaries, Energetix Inc. and NYSEG Solutions Inc., for $110 million to the North American subsidiary of England-based Centrica PLC, officials said.

The cash deal, announced Thursday, is expected to close in the third quarter.

The Centrica subsidiary, Direct Energy Services LLC, has its headquarters in Houston. It has more than 1 million residential and small-business customers in the Northeast.

“This acquisition marks another step in the North American business and supports Direct Energy’s strategy to grow and add scale to the U.S. northeast downstream power and gas production, particularly in the New York market,” President and CEO Chris Weston said in a statement.

Energetix and NYSEG Solutions are wholly owned subsidiaries of Iberdrola USA Inc., whose headquarters are in Rochester. They operate as a single retail organization, servicing 245,000 residential and small commercial customers in New York and Pennsylvania, officials said.

The acquisition is the third in the Northeast for Direct Energy in the last 17 months.

It bought Rockland County-based Gateway Energy Services Corp. for $90 million in March 2011 and Evansville, Ind.-based natural gas retailier Vectren Source for $39 million in January.

(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.