M&A Deal Summary

Direct Energy Acquires Hess Energy Marketing Business

On November 1, 2013, Direct Energy acquired utilities company Hess Energy Marketing Business from Hess for 1.0B USD

Acquisition Highlights
  • This is Direct Energy’s 2nd transaction in the Utilities sector.
  • This is Direct Energy’s largest (disclosed) transaction.
  • This is Direct Energy’s 11th transaction in the United States.

M&A Deal Summary
Date 2013-11-01
Target Hess Energy Marketing Business
Sector Utilities
Buyer(s) Direct Energy
Sellers(s) Hess
Deal Type Divestiture
Deal Value 1.0B USD

Target

Hess Energy Marketing Business

United States
The Energy Marketing business supplies natural gas and electricity to 23,000 commercial, industrial and small business customers in the eastern half of the United States.

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Buyer(S) 1

Buyer

Direct Energy

Houston, Texas, United States

website

Category Company
Founded 1997
Sector Utilities
DESCRIPTION

Direct Energy LP is retail provider of electricity, natural gas, and home and business energy-related products and services. Direct Energy was founded in 1997 and is based in Houston, Texas.

DEAL STATS #
Overall 12 of 15
Sector (Utilities) 2 of 3
Type (Divestiture) 7 of 8
Country (United States) 11 of 13
Year (2013) 3 of 3
Size (of disclosed) 1 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-09-05 America s Water Heater Rentals

Canonsburg, Pennsylvania, United States

America's Water Heater Rentals LLC is a residential water heater rental business with 85,000 customers in 14 states. Partnered with a fundless sponsor to purchase this non-core business from a large, Midwest utility

Buy $30M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-07-25 Direct Energy - Home Services Business

Ontario, Canada

Direct Energy - Home Services Business currently has nearly 1.9 million home services contracts in Ontario, to provide a range of plumbing, heating, ventilation, air conditioning and other related services.

Sell CA$550M

Seller(S) 1

SELLER

Hess

New York, New York, United States

website

Category Company
Founded 1920
Sector Oil/Gas Exploration
Employees1,545
Revenue 11.3B USD (2022)
DESCRIPTION

Hess is a global integrated energy company engaged in the exploration, production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products. Hess was founded in 1920 and is based in New York, New York.

DEAL STATS #
Overall 8 of 15
Sector (Utilities) 1 of 1
Type (Divestiture) 5 of 11
Country (United States) 3 of 7
Year (2013) 5 of 6
Size (of disclosed) 3 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-10-09 Hess U.S. East Coast & St. Lucia Terminal Network

United States

Hess U.S. East Coast & St. Lucia Terminal Network, comprises 20 liquid petroleum products terminals with total storage capacity of about 39 million barrels.

Sell $850M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-12-11 Hess U.S. East Coast Bunkering Business

United States

Hess U.S. East Coast Bunkering Business engages in supply of fuels to the ports of New York, Philadelphia, Baltimore, Norfolk and Charleston. The business includes 250,000 cubic meters of leased tank storage.

Sell $30M
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