Centrica acquires new power

Centrica has signed an agreement to acquire NewPower Holdings for $1.05 per share in cash for a total of approximately $130 million (£87 million).

NewPower is a retailer of gas and electricity, serving residential and small business customers in states including Georgia, New Jersey, Ohio, Pennsylvania and Texas.

The acquisition follows the January 28th announcement that Centrica has agreed to acquire Enbridge Services with 1.3 million home and business services customers in Canada.

After both transactions are completed, and after the Ontario electricity market opens as scheduled in May, Centrica will have around 4.3 million customer relationships with North American households.

NewPower reported revenues of $369.9 million and net losses of $212.8 million before non-recurring items for the year ended December 31, 2001 and net assets of $246 million as at December 31, 2001.

Centrica expects to commence a tender offer within one week to acquire all of the outstanding shares of NewPower. The boards of directors of both Centrica and NewPower have approved the transaction.

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