NRG Energy, Inc. (NYSE: NRG) Thursday announced a definitive agreement to acquire Green Mountain Energy Company for $350 million in cash.
Founded in 1997, Green Mountain is the longest serving green
power marketer in the U.S. and a leading retail provider of
cleaner energy and carbon offsets.
NRG will combine its growing
portfolio of renewable power assets and development pipeline with Green Mountain’s green retail franchise in Texas, New York and other core markets served
by Green Mountain and NRG.
“A permanent and fast-growing portion of the American population is seeking to live sustainably across all key phases of their lifestyle, including the energy they use in their homes, at work and in their personal transportation. Green Mountain understands that customer base and serves it better than any other retail energy provider,” said David Crane, NRG President and CEO. “Increasingly NRG, with our expanding portfolio of wind, solar and biomass initiatives, working with and through Green Mountain, is poised to become the clean energy provider of choice for Americans who want to make a difference for the environment.”
Green Mountain will be run as a standalone
business within NRG. This acquisition, with an anticipated annual EBITDA
contribution of $70 million, is immediately accretive to EBITDA and
free cash flow. NRG anticipates funding the transaction with cash on
hand upon transaction close, which is expected by mid-November.
Green Mountain ranked highest in J.D. Power and Associates 2009 Texas Business Retail Electric Provider Satisfaction Study. Austin-based Green Mountain has residential and commercial customers primarily in Texas and the New York metro region. Green Mountain also delivers green products and services to select utilities, including Portland General Electric (NYSE: PGE)—ranked as the number one green utility program by the Department of Energy’s National Renewable Energy Laboratory—as well as providers in New York and New Jersey.
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