Calpine to Acquire Champion Energy
Houston-based Calpine – which claims to be America’s largest wholesale generator of electricity from natural gas and geothermal resources – entered into an agreement on July 20 to purchase Champion Energy Marketing, a retail electric provider, also headquartered in Houston. The transaction will cost $240 million, subject to working capital adjustments.
Champion expects to supply about 22 TWh of residential, commercial and industrial customer load in 2015 – concentrated in the Texas and the Northeast US markets, where Calpine already 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 CEO Thad Hill. “Champion’s presence in Texas and the Northeast makes it the ideal retail complement to our wholesale generation portfolio.”
Champion will continue to operate under the Champion brand after the transaction closes. Champion’s customers will experience no disruption in service as a result of the acquisition, and all existing customer contracts will be honored. David Tudor, Champion’s CEO, will remain in his leadership role at the company, preserving continuity of customer care while continuing to advance growth efforts.
Specifically, Calpine will acquire the business from Champion Energy Holdings, a subsidiary of Crane Holding Companies, which owns a 75 percent interest, and EDF Trading North America, which owns a 25 percent interest. Calpine intends to fund the acquisition with cash-on-hand. The transaction is expected to close by the fourth quarter of 2015.
- 2015 Insider Knowledge
- Four Key Questions to Ask Before Your Next Energy Purchase
- Advanced Rooftop-Unit Control (ARC) Retrofits: Field Demonstrations Validate Energy Savings
- Strategies for a Successful EHS&S Software Selection
- Improve Occupant Comfort & Reduce Energy Costs Through Humidity Control
- The New Energy Future - Challenges and Opportunities in Corporate Energy Management
- 2016 Energy and Sustainability Predictions Findings from Facilities Professionals
- Choosing the Correct Emission Control Technology
- 2016 Environmental Leader Product & Project Awards
- Energy Manager Today Awards Top Products and Top Projects of the Year