Calpine Corporation (NYSE: CPN) announced today that it will purchase Champion Energy Marketing LLC, one of the nation’s leading retail electric providers, for $240 million, subject to working capital adjustments. Based in Houston, Champion is expected to serve approximately 22 TWh of residential, commercial, and industrial customer load in 2015, concentrated in Texas and the Northeast U.S. where Calpine has a substantial power generation presence.
“This highly accretive transaction is an extension of our deliberate efforts over the past several years to be closer to our end-use customers,” said Calpine’s President and Chief Executive Officer Thad Hill. “Champion’s presence in Texas and the Northeast makes it the ideal retail complement to our wholesale generation portfolio. Having built a brand known for its award-winning customer service, the Champion team is a welcome addition to the Calpine family.”
Champion will continue to operate under the Champion brand after the transaction closes. Champion’s customers will experience no disruption to service as a result of the transaction, and all existing customer contracts will be honored. David Tudor, Champion’s President and Chief Executive Officer, will remain in his leadership role at Champion, preserving continuity of customer care while continuing to advance growth efforts.
“Champion brings a strong track record of delivering value to retail customers. With the added strength of Calpine’s generation fleet, we are confident that we can continue to grow our business,” said Tudor.
Calpine will acquire the business from Champion Energy Holdings, a subsidiary of Crane Holding Companies, which owns a 75% interest, and EDF Trading North America, which owns a 25% interest. The transaction is expected to close by the fourth quarter of 2015 and is subject to approval from the Federal Energy Regulatory Commission.
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