Constellation NewEnergy Gas buys Noco for $10 Million
BUFFALO, N.Y.--Constellation NewEnergy Gas has acquired the commercial and industrial natural gas customer base from a partnership whose principals included Noco Energy Marketing, reported New York’s Business First of Buffalo .
The deal gives Constellation a deeper foothold in upstate New York while also allowing Town of Tonawanda, N.Y.-based Noco to focus on its core retail businesses, which include gas and convenience stores and supplying residential customers with natural gas services, reported the newspaper.
Constellation NewEnergy, an arm of the publicly-traded Constellation Energy Group Inc., paid $10 million for Noco Energy Marketing, which had been owned by Noco and MW Energy, according to the report.
"The deal mirrors our business model," Michael Newman, Noco executive vice president, told Business First of Buffalo . "It positions our company more appropriately and allows us to better serve our retail and residential customers."
The Noco Energy Marketing division had about 300 commercial and industrial customers, said James Newman, company president, in the report.
The division had seven employees -- six in the Buffalo Niagara region. All are being retained by Constellation NewEnergy, which also plans on expanding its customer base in the upstate area.
"The deal is an excellent fit with our expertise in natural gas consulting and management," Larry McDonnell, Constellation NewEnergy spokesman, told the newspaper. "Western New York is a good competitive market for us to be in and we see this deal as growing our presence there."
In addition, the deal also gives Constellation NewEnergy an entry into the National Fuel Gas distribution system within the region.
"It's a good deal for everyone," James Newman told the newspaper. "It gives the market another player in the commercial market and it allows us to better align our natural gas business with our existing business."
The deal gives Constellation a deeper foothold in upstate New York while also allowing Town of Tonawanda, N.Y.-based Noco to focus on its core retail businesses, which include gas and convenience stores and supplying residential customers with natural gas services, reported the newspaper.
Constellation NewEnergy, an arm of the publicly-traded Constellation Energy Group Inc., paid $10 million for Noco Energy Marketing, which had been owned by Noco and MW Energy, according to the report.
"The deal mirrors our business model," Michael Newman, Noco executive vice president, told Business First of Buffalo . "It positions our company more appropriately and allows us to better serve our retail and residential customers."
The Noco Energy Marketing division had about 300 commercial and industrial customers, said James Newman, company president, in the report.
The division had seven employees -- six in the Buffalo Niagara region. All are being retained by Constellation NewEnergy, which also plans on expanding its customer base in the upstate area.
"The deal is an excellent fit with our expertise in natural gas consulting and management," Larry McDonnell, Constellation NewEnergy spokesman, told the newspaper. "Western New York is a good competitive market for us to be in and we see this deal as growing our presence there."
In addition, the deal also gives Constellation NewEnergy an entry into the National Fuel Gas distribution system within the region.
"It's a good deal for everyone," James Newman told the newspaper. "It gives the market another player in the commercial market and it allows us to better align our natural gas business with our existing business."