SOURCE: Major Energy

Major Energy

May 04, 2016 16:23 ET

Major Energy Announces Sale to National Gas & Electric

NEW YORK, NY--(Marketwired - May 4, 2016) - Major Energy, headquartered in Orangeburg, N.Y., today announced that it has been acquired by National Gas & Electric ("NGE"), an affiliate of Spark Energy, Inc. (NASDAQ: SPKE) ("Spark") and that Spark and NGE have reached terms for Major Energy to be transferred to Spark.

The deal between NGE and Major Energy, a retail energy business with approximately 210,000 RCEs, is worth up to $80.0 million plus adjustments for working capital. NGE closed on the acquisition of Major Energy on April 15, 2016 and has since been preparing the company as a drop-down to Spark.

Major Energy serves electricity and natural gas customers in eight states and adds 15 new utility territories to Spark's footprint.

"We found in Major Energy a unique opportunity to provide Spark a pathway of accelerated growth with a drop-down opportunity that is accretive to shareholders," said W. Keith Maxwell III, NGE's CEO.

"Spark intends on leveraging the retail energy expertise and knowledge of Major Energy's management team to further enhance our growth strategy," said Nathan Kroeker, CEO of Spark Energy, Inc. "We are very excited to have Major Energy's team and their full complement of strategic marketing partners, including Madison Square Garden and the New York Yankees, join and work with the Spark Energy family."

"We see the acquisition by Spark Energy and their financial integration as a win-win for our customers, employees, vendors and marketing partners," added Dan Alper, who will remain the CEO of Major Energy. "While we will continue to run our business as usual, the financial integration with Spark brings us additional opportunities to bring enhanced value to the customer marketplace as part of a much larger platform."

About National Gas & Electric, LLC
NG&E is wholly owned by W. Keith Maxwell III, who is also the Founder and Chairman of Spark Energy. NG&E is working alongside Spark to develop a strategy that maximizes Spark's ability to aggressively pursue additional growth through M&A while also serving as a retail holding company for the de-risking of acquired books of customers.

About Major Energy
Founded in 2005, Major Energy is a licensed energy service company supplying natural gas and electricity to customers in 8 states and in over 40 utility territories. Major Energy has an A+ rating with the Better Business Bureau and partnerships with Madison Square Garden, the NY Rangers, Knicks and Yankees. Major Energy's management team has over 50 years of experience in the energy retail marketplace and their passion to help residential and business customers reduce their energy costs are reflected in their year over year growth and company rating. Major Energy is a leader and innovator in the renewable and energy conservation space. In 2013 Major Energy constructed a 2.5 MW PV solar ground and currently supplies solar power to the University of Massachusetts Medical School. To learn more, visit: www.MajorEnergy.com.

Contact Information

  • Major Energy
    Eliott Wolbrom
    Chief Marketing Officer
    (845) 480-7431
    Email Contact

    Barry Smith
    BLS Public Relations
    (818) 621-0839
    Email Contact

    National Gas & Electric
    Michael Tsang
    VP of Finance & Capital Markets
    (832) 320-2917