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Direct Energy Acquires Vectren Source
January 3, 2012
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Copyright 2010-
Direct Energy has acquired Vectren Source from Vectren Corporation for $39 million in cash, plus additional working capital.
Vectren Source's book includes 280,000 residential and small business natural gas customers in Ohio, Indiana and New York, with the total including 134,000 accounts served through aggregation.
Around 95% of customers are located in Ohio.
The acquisition adds substantially to Direct Energy's existing Ohio residential base of 210,000 customers.
Direct Energy parent Centrica said that the addition of Vectren Source has the potential to deliver significant cost savings once integration is completed and further strengthens Direct Energy's position in the US Northeast.
"The opportunity to bolster our position in North America's competitive retail markets like Ohio makes Vectren Source an attractive addition to Direct Energy's downstream gas business," said Chris Weston, President and CEO of Direct Energy. "In 2011, Direct Energy has successfully and aggressively pursued both acquisitive and organic growth in Canada and the U.S., and we will continue this strategy in 2012 as we build the leading, integrated energy company in North America."
The transaction closed on December 31, 2011.
Email This StoryCopyright 2010-
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