NRG Energy, owner and operator of one of the United States’ largest and most diverse power generation portfolios, this morning announced that it has agreed to acquire Green Mountain Energy Company, a retail provider of clean energy products and services, for $350 million in cash.
Green Mountain, which was founded in 1997, will be run as a standalone business within NRG.
The company offers consumers and businesses the choice of clean electricity products from renewable sources such as wind and water, as well as a variety of carbon offset products.
With the purchase of Green Mountain Energy, NRG Energy says it is “poised to become the clean energy provider of choice for Americans who want to make a difference for the environment”.
NRG states that the acquisition, with an anticipated annual EBITDA contribution of $70 million, is immediately accretive to EBITDA and free cash flow. The company anticipates funding the deal with cash on hand upon transaction close, which is expected by mid-November.