Deal represents keystone event in the company’s history and is a
significant step forward towards exit
CHICAGO, Aug. 18, 2015 /PRNewswire/ — PowerOne Corporation, an aggressive, growth-focused
energy company, today announced it has finalized the purchase of ResCom Energy, LLC. ResCom is an
established Retail Energy Provider licensed to operate in 11 utility territories across six states in the
Midwest and Northeast. The membership interest purchase agreement provides PowerOne with 100
percent interest in ResCom. ResCom will operate as a wholly owned subsidiary of PowerOne. Feller
Energy Law Group, PLLC represented PowerOne for the purchase of ResCom.
“The purchase of ResCom Energy, LLC marks the most significant milestone for PowerOne to date,”
stated George Wahbeh, PowerOne’s CEO and President. “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.”
On August 6, 2015, the Federal Energy Regulatory Commission (FERC) 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,” explained Dennis Locke, the
company’s CFO. “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.”
ResCom has historically been a very lucrative operation, with generous revenue and strong internal rate
of return. The previous owner’s strategy was to build high-value books of business and sell to larger
suppliers. Audited financial statements for last year show ResCom revenue at $2.4 million with $924,000
passing through to net income. Performance for prior years was similar. Proforma revenue for ResCom
shows electric sales growing from $14.7 million in the first year of operating as a PowerOne subsidiary to
over $119 million in the third year.
PowerOne management will initially pursue aggressive growth in several key ResCom territories that
show the greatest opportunity according to a proprietary index of key factors. Through strategic
acquisitions of companies, books of business and through organic growth, PowerOne expects to be a
prime acquisition target for one of the many major retailers seeking to consolidate the industry by
purchasing smaller, more agile and aggressive competitors.
About PowerOne
PowerOne Corporation is a power company that provides its customers with discounted electricity and
natural gas through its own supply contracts and through its network of competitive energy retailers.
Headquartered in Chicago, the company is positioned to grow with the competitive energy market and
gain market share through better pricing, superior service and effective marketing strategies. Please
visit www.power1co.com for more information.
PowerOne Corporation Safe Harbor
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in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often
identified by the use of forward-looking terminology such as “believes,” “expects,” “anticipate,”
“optimistic,” “intend,” “will” or other similar expressions. The Company’s actual results could differ
materially from those anticipated in these forward-looking statements as a result of a variety of factors,
including those beyond the control of the Company. All forward-looking statements attributable to the
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than as required under applicable securities laws, the Company does not assume a duty to update these
forward-looking statements.