Centrica subsidiary expands footprint in New York

published 12 July 2012

Energy provider Centrica has agreed to acquire the New York-based energy retailers Energetix and NYSEG Solutions, which operate as a single retail organisation, in order to strengthen its position in north-east America.

The acquisition, made through Centrica's North American subsidiary Direct Energy, will cost the company $110m (£71m) in cash, plus additional working capital, and is expected to deliver economies of scale and significant cost savings through integration of the businesses with Direct Energy's existing operations.

Direct Energy President and Chief Executive Officer Chris Weston said: "This acquisition marks another step in the development of our North American business and supports Direct Energy's strategy to grow and add scale to its US Northeast downstream power and gas position, particularly in the New York market."