StarTex Power Signs Definitive Merger Agreement To Be Acquired By Constellation Energy
May 27 2011 - 8:00AM
Business Wire
StarTex Power, a Texas-based retail electric provider that
serves 170,000 residential and commercial customers across the
state, announced today that it has signed a definitive merger
agreement to be acquired by Constellation Energy (NYSE:CEG).
Constellation, headquartered in Baltimore with approximately 12,000
megawatts of generation capacity, will leverage StarTex Power’s
model based on award-winning customer care and low prices to drive
their mass market growth.
“We are excited to announce our merger with Constellation and
look forward to having opportunities for further growth by using
Constellation’s national footprint,” said Bob Zlotnik, chief
executive officer and president of StarTex Power. “Not only does
this bring greater opportunities for our employees, but it gives
StarTex Power stronger support to continue to serve our customers
with the Star Treatment while furthering our commitment to
upholding the highest standards in the industry.”
The purchase of StarTex Power gives Constellation Energy a
foothold in the Texas mass market, the most active of all
residential electricity markets in the country, and is a key
element of the company’s broader strategy to be a residential
sector market leader.
“Our employees, who helped make this company what it is today,
own roughly 30 percent of StarTex Power. This merger continues to
Return the Favor to them by fully vesting their interests so each
employee will share financially in the proceeds from the sale,”
said Marcie Zlotnik, chairman of StarTex Power.
StarTex Power was founded in 2004 by Bob and Marcie Zlotnik who
started the Employee Stock Ownership Plan as a commitment to “give
back” to the employees, a key component to the success of the
Company.
StarTex Power’s 170,000 residential and commercial customers
will expand Constellation Energy’s residential customer base moving
Constellation a step closer to its goal of 1 million mass market
customers by the end of 2011. Further, the acquisition gives
Constellation, www.constellation.com, leading presence in the most
vibrant competitive market in the nation – Texas. Approximately 5.4
million customers in the deregulated ERCOT market shop for an
electricity provider, the highest in the nation.
“StarTex Power brings award-winning service for residential and
commercial customers to Constellation Energy’s growing residential
platform,” said Mark Huston, head of Constellation Energy’s retail
business. “The StarTex acquisition strengthens our commitment to
choice and innovation for customers, continues Constellation
Energy’s systematic retail expansion, and brings an employee base
that has helped the company win awards such as the Better Business
Bureau Pinnacle Award.”
Bob Zlotnik added, “We have a high degree of respect for
Constellation and believe that this is really the pairing of two
strengths. This merger provides us with greater accessibility to
expansion while giving Constellation a strong presence in the Texas
market focused on mass market growth.”
StarTex Power will remain headquartered in Houston where its
roughly 150 employees reside. Credit Suisse acted as exclusive
financial adviser and Baker Botts LLP acted as legal counsel to
StarTex Power on the transaction.
For information on how StarTex Power can provide the power to
connect your home or business to competitive rates, great service
and easy-to-read bills visit www.StarTexPower.com.
About StarTex Power
StarTex Power, one of the fastest growing retail electric
providers in the United States, gives its customers the Star
Treatment with competitive prices, transparent billing, and
superior customer service. StarTex Power is the sole Retail
Electric Provider to be awarded the 2010 Better Business Bureau
Pinnacle Award and was named the #1 Fastest Growing Energy Company
in 2009 by Inc. Magazine. StarTex Power is employee owned and was
the only Texas-based retail electric provider to be named a Top
Small Company Workplace for 2010 by Inc. Magazine and Winning
Workplaces. StarTex Power has been named among the top ten Best
Places to Work by the Houston Business Journal for four consecutive
years. Serving approximately 170,000 residential and commercial
customers, StarTex Power is committed to upholding the highest
standards in the retail electric industry.
About Constellation
Energy
Constellation Energy is a leading competitive supplier of power,
natural gas and energy products and services for homes and
businesses across the continental United States. It owns a
diversified fleet of generating units, totaling approximately
12,000 megawatts of generating capacity, and is a leading advocate
for clean, environmentally sustainable energy sources, such as
solar power and nuclear energy. The company delivers electricity
and natural gas through the Baltimore Gas and Electric Company
(BGE), its regulated utility in Central Maryland. A FORTUNE 500
company headquartered in Baltimore, Constellation Energy had
revenues of $14.3 billion in 2010.
Constellation Energy (NYSE:CEG)
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