Acquisition Energy America

Centrica PLC 12 December 2000 12 December 2000 Centrica builds its energy retailing operations in North America Centrica plc announced today that it will assume full ownership and management control of Energy America LLC, the energy retailing joint venture that sells gas and electricity to around 400,000 residential and small business customers in the USA. Centrica will acquire the outstanding 72.5 per-cent stake of former partner Sempra Energy, for a consideration of approximately $56m (£ 38.62m) in cash. The agreement follows Centrica's acquisition of Direct Energy Marketing Limited in August this year, which included a 27.5 per-cent interest in Energy America. The acquisition of Sempra Energy's shareholding in Energy America gives Centrica full ownership of the customer base, giving a platform for development into the US market. It also creates an opportunity to integrate the company into Direct Energy's Toronto operations, together with its associated energy resources division in Calgary. These changes will help reinforce Centrica's position as the largest unregulated energy sales operation in North America. The offer is subject to the approval of relevant regulatory authorities. Energy America sells gas and electricity to customers in Michigan, Ohio, Maryland, Pennsylvania, New Jersey and Georgia and is one of the largest and most successful unregulated retailers in the USA. Roy Gardner, Chief Executive, of Centrica said; 'This is an important milestone in our plans to offer a compelling energy proposition, superior service, and customer choice to a rapidly increasing number of US households. We aim to build on the excellent start Energy America has made over the last two years' Further information: UKMedia enquiries Tess Kershaw 01753 758443 Neville Barltrop 01753 758442 Investor enquiries Chris Milburn 01753 758114 Canada Enquiries Nick Fulford (416) 221 4441 ex 3516 & USA or (416) 457 6114 Notes to Editors * Centrica plc is a leading supplier of energy and services at home and on the road, trading under the British Gas, Scottish Gas, AA and Goldfish brands. The acquisition of Canada's Direct Energy Marketing Limited, for £ 406m, in August this year, marked the first step in delivering its international strategy. * Direct Energy is North America's largest unregulated retailer of energy. The company supplies gas and electricity to homes and businesses in Canada. * To consolidate Direct Energy's ability to serve existing and future customers, Centrica acquired Avalanche Energy Limited earlier this month for C$253.5m (£114.5m) The Canadian gas producer was set up in 1997. Approximately 90 per-cent of the assets acquired are gas producing, the remainder are oil.

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