AEG Financial Closes Three More M&A Deals in the Retail Energy Space in Past Seven Months and is Shopping Three More New M&A Opportunities in Texas, PJM, and New Yorks
March 30, 2023
AEG Affiliated Energy Group Financial demonstrates its continued top-of-market expertise by closing three more M&A deals, specifically in the retail electricity and gas space, in the past seven months. In addition to the three deals already closed, AEG is shopping more deals to prospective buyers, including two more on the near-term horizon.
"AEG Financial is thrilled to have helped so many clients thrive despite the enormous volatility in gas and power prices throughout 2022, successfully structuring and closing successful M&A deals in a number of different environments," said Rob S. Potosky, EVP of AEG's M&A Practice.
"AEG's team has learned as much from the failed attempts by buyers as AEG's successful closings, bolstering AEG's unique and proprietary database and views of which buyers and investors can actually get deals to the finish line, which buyers try to 're negotiate or re-trade' once they've locked up sellers, and which buyers endlessly kick tires or take so long (and ask so many unnecessary immaterial questions) that they're to be avoided if all else equal. Careful selection of buyers and investors with whom to 'walk down the aisle' is critical in closing deals in the present landscape and is often the difference in a good deal and no deal at all, which deal-precedent and proprietary market data of AEG have aided recent counteroffer processes as well," continued Potosky.
Deals closed by AEG as lead investment banking team in the past seven months:
1. The sale of 100% of the North American assets of a UK-based retail energy provider, circa September 2022.*
2. The sale of an almost 100,000 RCE retail energy business in December 2022.*
3. The sale of a large C&I retail customer gas business, with 100% C&I gas customers (in deregulated territories).*
AEG presently has additional opportunities as follows:
1. Roughly 45,000 RCEs in ERCOT (Texas). This ERCOT business is about half mass market customers and half C&I customers in terms of load proportion. This has low concentration risk, and the C&I customers are on the smaller side of C&I, featuring a strong high-quality "sticky" book built over many years and with strong gross margins already locked in, 100% electricity.
2. Smaller mass market book in PJM (all power in Pennsylvania and a smaller sum in New Jersey).
3. A roughly 40,000 RCE dual product business in New York and PJM, generating strong cash flows and EBITDA, and containing numerous competitive advantages and proprietary platforms.
AEG Financial can be reached at firstname.lastname@example.org. "In terms of timing, deals four and five will probably be off the market (in exclusivity or otherwise locked up) by April 15," continued Potosky.
*More information on these deals will be announced to the extent clients permit and subsequent to fully completed transitions.
Notices and About AEG Affiliated Energy Group
This announcement appears as a matter of record only and is not to be considered any advice or any type of offer or solicitation with respect to any securities, commodities, real property, or any other property. AEG is an energy and financial services firm headquartered in Houston, Texas. AEG Affiliated Energy Group is a multi-faceted energy and financial services firm headquartered in Houston, TX. AEG offers a variety of energy-related financial and professional services for energy market participants in North American deregulated energy markets. With clients ranging from regional privately held ventures to multinational publicly traded utilities and conglomerates, AEG is the "expert's expert" in energy related M&A, financing, wholesale and retail energy transactions. AEG specializes in energy-related transactions ranging from: Mergers & Acquisitions, Energy Financing and Wholesale Procurement, Energy and Gas Procurement for End Users, Electric Power, Fuel and Biogas Development, Renewable Energy, and Consulting and Litigation Support Services.
For more information, visit www.affiliatedenergy.com. All services that are required to be performed by a registered broker-dealer are offered through Burch & Company, Inc., Member FINRA & SiPC. The AEG Group and Burch are not affiliated entities.
SOURCE: AEG Affiliated Energy Group
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