Chicago's PowerOne Corp. concluded its acquisition of ResCom Energy LLC Tuesday as it prepares to expand its presence throughout the Midwest.
"The purchase of ResCom Energy LLC marks the most significant milestone for PowerOne to date," PowerOne's CEO and president George Wahbeh said. "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."
In August, the Federal Energy Regulatory Commission 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," PowerOne Chief Financial Officer Dennis Locke said. "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."