Direct Energy, which operates in all 50 states and six Canadian provinces, is a retail provider of electricity, natural gas and home and business energy-related products and services, and is a subsidiary of London-based Centrica PLC.
The deal will build on NRG’s status as a energy provider and will add more than 3 million retail customers to its roster, broadening the company’s presence across the U.S. and Canada. It will also allow the combined company to reduce costs and leverage shared best practices.
“This combination improves NRG’s status as one of North America’s premier integrated power companies, bringing the power of energy to people and organizations through our diverse generation platform and leading retail brands,” Mauricio Gutierrez, CEO and president of NRG, said. “The acquisition aligns with our broader strategy of perfecting our integrated business model and drives significant value creation for our customers and stakeholders. Direct Energy ’s 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.”
The deal is expected to close by the end of 2020.
Citi and Credit Suisse are serving as financial advisers and Latham & Watkins and Baker Botts LLP are serving as legal counsel to NRG.