PowerOne Corporation purchases retail provider ResCom Energy LLC
Written By: Tracy Dawson Roses
August 18, 2015
On August 18, PowerOne Corporation announced it has finalized the purchase of ResCom Energy, LLC. ResCom is an established Retail Energy Provider licensed to operate in 11 utility territories across six states in the Midwest and Northeast. ResCom will operate as a wholly owned subsidiary of PowerOne. Feller Energy Law Group, PLLC represented PowerOne for the purchase of ResCom.
George Wahbeh, PowerOne’s CEO and President commented:
“With this acquisition, PowerOne completes its transition from broker to Retail Energy Provider. Our aim will now shift towards the sale of electricity, natural gas and related products and services directly to residential and business consumers through ResCom. We believe ResCom’s current service territories represent the strongest opportunities for growth of customer base and revenue available nationally. We estimate revenue from energy sales to be 12 to 20 times higher per customer than commissions earned through brokering services.”
On August 6, 2015, the Federal Energy Regulatory Commission accepted PowerOne’s request for approval for the ResCom purchase. This filing was a requirement for PowerOne to complete the transaction.
Dennis Locke, the company’s CFO remarked:”PowerOne is expediting its business plan through strategic acquisitions. This is the third, and most important, acquisition for the company to date. We are currently shopping for a preferred supplier agreement or similar capital partnership, which we will use to rapidly increase our customer base and to fund energy purchases. We predict, based on internal projections, exponential growth over the next several years.”
PowerOne management will initially pursue aggressive growth in several key ResCom territories that show the greatest opportunity according to a proprietary index of key factors. Through strategic acquisitions of companies, books of business and through organic growth, PowerOne expects to be a prime acquisition target for one of the many major retailers seeking to consolidate the industry by purchasing smaller, more agile and aggressive competitors.