NRG Energy Inc. announced May 20 that it is acquiring Stream Energy's retail electricity and natural gas business for $300 million plus working capital in an all-cash transaction.
Stream Energy serves more than 600,000 residential customer equivalents in nine states and the District of Columbia. NRG Energy expects the purchase to increase its market share in Texas, Pennsylvania and other markets in the Eastern U.S.
"Stream Energy's retail energy business provides NRG an attractive opportunity to increase our national retail leadership position and potential for growth," NRG Energy President and CEO Mauricio Gutierrez said in a May 20 statement. The transaction is expected to contribute $65 million in annual EBITDA.
At closing, Stream's remaining business will emerge as a new brand to market energy and wireless services. It will also be the exclusive marketer of the retail energy business acquired by NRG.
The deal is expected to close in the third quarter of 2019, subject to various customary closing conditions, approvals and consents, including the Federal Energy Regulatory Commission, the Georgia Public Service Commission and antitrust review under the Hart-Scott-Rodino Act.