Sells natural gas entity for $10 million to concentrate on c-stores, gasoline
TONAWANDA, 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 Business First of Buffalo. The deal gives Constellation a deeper foothold in upstate New York while also allowing NOCO to focus on its core retail businesses, including its convenience stores, gas stations and residential natural gas and home heating oil services.
The company operates 33 NOCO Express locations in western New York.
"The deal [image-nocss] mirrors our business model," Michael Newman, NOCO executive vice president, told the newspaper. "It positions our company more appropriately and allows us to better serve our retail and residential customers."
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, said the report.
The NOCO Energy Marketing division had about 300 commercial and industrial customers, said James Newman, company president. The customers accounted for about 20 billion cubic feet of natural gas volume on an annual basis. The division had seven employees. All are being retained by Constellation NewEnergy, which also plans on expanding its customer base in the upstate area.
"It's a good deal for everyone," Newman added.