CHICAGO, Aug. 18, 2015 /PRNewswire/ -- PowerOne Corporation, an aggressive, growth-focused energy company, today 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. The membership interest purchase agreement provides PowerOne with 100 percent interest in ResCom. ResCom will operate as a wholly owned subsidiary of PowerOne. Feller Energy Law Group, PLLC represented PowerOne for the purchase of ResCom.
"The purchase of ResCom Energy, LLC marks the most significant milestone for PowerOne to date," stated George Wahbeh, PowerOne's CEO and President. "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 (FERC) accepted PowerOne's request for approval for the ResCom purchase. This filing was a requirement for PowerOne to complete the transaction.
"PowerOne is expediting its business plan through strategic acquisitions," explained Dennis Locke, the company's CFO. "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."
ResCom has historically been a very lucrative operation, with generous revenue and strong internal rate of return. The previous owner's strategy was to build high-value books of business and sell to larger suppliers. Audited financial statements for last year show ResCom revenue at $2.4 million with $924,000 passing through to net income. Performance for prior years was similar. Proforma revenue for ResCom shows electric sales growing from $14.7 million in the first year of operating as a PowerOne subsidiary to over $119 million in the third year.
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.
PowerOne Corporation is a power company that provides its customers with discounted electricity and natural gas through its own supply contracts and through its network of competitive energy retailers. Headquartered in Chicago, the company is positioned to grow with the competitive energy market and gain market share through better pricing, superior service and effective marketing strategies. Please visit www.power1co.com for more information.
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SOURCE PowerOne Corporation