CHICAGO, Nov. 18, 2014 /PRNewswire/ -- PowerOne Corporation is ramping up efforts to aggressively open new markets and gain share through strategic acquisitions. Recently the company began negotiations to purchase two established Retail Energy Providers (REPs). These REPs service complementary territories and bring with them significant books of business with a combined top line of nearly $40 million. These acquisitions could increase the company's market capitalization by as much as $120 million.
"There are a number of well-run REPs seeking an exit right now," stated George Wahbeh, president and CEO of PowerOne. "These firms are, for the most part, beneath the radar of larger competitive energy players and utilities, but they make perfect acquisition targets for PowerOne. These acquisitions allow us to leap-frog the normal barriers of entry to new markets, which include lengthy licensing processes, market ramp-up and sales force training and implementation."
With these acquisitions, PowerOne will gain a significant foothold in key Midwest and Northeast markets. The company plans to keep existing management in place, while augmenting customer portfolios with aggressive sales campaigns.
"The goal is to increase customer count while lowering attrition due to expiring contracts," noted Rami Fawaz, the company's COO. "PowerOne is able to service a much larger customer base than what either book now holds, and we can do it without increasing our operational overhead. This translates directly into a significant increase in value for these books."
Management expects to secure these deals by Q2 2015.
PowerOne Corporation provides its clients with discounted electricity and natural gas through its network of competitive suppliers and the company's retail electricity supply offerings. 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