Centrica to buy US energy company

Centrica’s North American subsidiary, Direct Energy, has entered into an agreement to acquire Strategic Energy for a total cash consideration of $300m.


Centrica’s North American subsidiary, Direct Energy, has entered into an agreement to acquire Strategic Energy, a subsidiary of Great Plains Energy, for a total cash consideration of $300m.



Strategic Energy is said to be one of the United States‘ largest competitive electricity suppliers to the commercial and industrial (C&I) market with over 26,000 customers across 11 states with revenues of some $2bn and sales of 21TWh.



The merger of Strategic Energy with Direct Energy’s existing C&I business will create a business supplying almost 55TWh of electricity and gas to customers which will make it a top three supplier of energy to the C&I market in North America.



‘Acquiring Strategic Energy is in line with our strategy of building on our growth platforms.’ said Sam Laidlaw, chief executive of Centrica. ‘It immediately strengthens our position in the important North American commercial and industrial market and, together with our recent acquisition of Rockyview Energy, it maintains Centrica’s ongoing commitment to growing this important part of our business.’


The transaction is subject to regulatory approval and is expected to close in June 2008.