{"id":2212,"date":"2020-08-03T20:46:31","date_gmt":"2020-08-03T20:46:31","guid":{"rendered":"https:\/\/electricrateselect.com\/?p=2212"},"modified":"2020-08-03T21:49:21","modified_gmt":"2020-08-03T21:49:21","slug":"nrg-energy-acquires-direct-energy","status":"publish","type":"post","link":"http:\/\/dev107.developer24x7.com\/cnp1238\/nrg-energy-acquires-direct-energy\/","title":{"rendered":"NRG Energy Acquires Direct Energy in $3.625 Billion Deal"},"content":{"rendered":"\t\t
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NRG Energy (NYSE: NRG) will acquire Direct Energy<\/a>, a North American subsidiary of U.K. based Centrica PLC<\/a> (OTC: CPYYF) in a 3.625 billion-dollar deal that is expected to close by the end of 2020.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Originally founded in Toronto in 1986, Direct Energy was then purchased by U.K. based Centrica in 2000. Direct Energy is one of the largest retail energy providers<\/a> in North America providing electricity, natural gas, and other home and business-related services to nearly four million customers in all 50 states and six Canadian provinces. In 2017, the Company generated over $14 billion in revenue and $243 million in U.S. operating profit.<\/p>

NRG Energy<\/a> owns over 30 generation facilities with a generation capacity of approximately 23 gigawatts serving nearly 3.7 million retail customers. The majority of NRG\u2019s power generation comes from natural gas and coal which make up 43% and 34% respectively, of the Company\u2019s total portfolio. The majority of NRG\u2019s retail customers are based in Texas<\/a> under the Reliant Energy name brand, while 76% of Direct Energy\u2019s home customers are outside of Texas.<\/p>

If approved by regulators, the deal will nearly double NRG\u2019s customer base while expanding the Company\u2019s footprint outside of Texas. The Company believes the acquisition will better supplement its power generation to match customer demand while enhancing its diversification in alternative power generation sources. The deal is expected to generate approximately $740 million in annual run-rate adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and $300 million in annual run-rate synergies. \u00a0<\/p>

President and Chief Executive Officer Mauricio Gutierrez states, \u201cThe acquisition aligns with our broader strategy of perfecting our integrated business model and drives significant value creation for our customers and stakeholders. Direct Energy\u2019s complementary assets, talented team, and excellent customer service make it a natural fit for our portfolio, and we look forward to welcoming Direct Energy to the NRG team.\u201d<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

NRG Energy (NYSE: NRG) will acquire Direct Energy, a North American subsidiary of U.K. based Centrica PLC (OTC: CPYYF) in a 3.625 billion-dollar deal that is expected to close by the end of 2020. Originally founded in Toronto in 1986, Direct Energy was then purchased by U.K. based Centrica in 2000. Direct Energy is one […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[46],"tags":[56,39,28,55],"_links":{"self":[{"href":"http:\/\/dev107.developer24x7.com\/cnp1238\/wp-json\/wp\/v2\/posts\/2212"}],"collection":[{"href":"http:\/\/dev107.developer24x7.com\/cnp1238\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/dev107.developer24x7.com\/cnp1238\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/dev107.developer24x7.com\/cnp1238\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/dev107.developer24x7.com\/cnp1238\/wp-json\/wp\/v2\/comments?post=2212"}],"version-history":[{"count":5,"href":"http:\/\/dev107.developer24x7.com\/cnp1238\/wp-json\/wp\/v2\/posts\/2212\/revisions"}],"predecessor-version":[{"id":2223,"href":"http:\/\/dev107.developer24x7.com\/cnp1238\/wp-json\/wp\/v2\/posts\/2212\/revisions\/2223"}],"wp:attachment":[{"href":"http:\/\/dev107.developer24x7.com\/cnp1238\/wp-json\/wp\/v2\/media?parent=2212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/dev107.developer24x7.com\/cnp1238\/wp-json\/wp\/v2\/categories?post=2212"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/dev107.developer24x7.com\/cnp1238\/wp-json\/wp\/v2\/tags?post=2212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}