Looking to expand the types of customers it serves, AGL Resources announced that it is acquiring Compass Energy Services Inc., a privately held Richmond, VA-based commercial and industrial energy services company.
Compass Energy made its name in 2002 by offering end-users a one-stop shop for custom solutions to all of their energy needs. Terms of the deal were not disclosed.
"The acquisition of Compass allows AGL Resources to directly serve a broader geography of customers in the commercial and industrial segment," said AGL Resources CEO John Somerhalder. "This acquisition allows us to expand our overall business portfolio and provide additional services to commercial and industrial customers."
Compass Energy was formed when six executives who left Dominion Retail Inc. stepped in and picked up a portion of Dominion's exited commercial and industrial energy service contracts. Formed on April 1, 2002 (see NGI, May 6, 2002), Compass Energy was one of the first companies to fill the niche left vacant when some of the big name energy merchants were divesting themselves of energy service operations.
The company's client base throughout the United States and Canada now includes representation from almost every industry and organizational type, from hospitals to Fortune 50 companies, from city and state governments to the federal government, and from a small dry cleaning plant to one of the world's largest manufacturers. The company, which manages electricity, natural gas, coal, oil, propane and steam supply contracts, has maintained a 93% client retention rate.
"This is an exciting time for Compass Energy," said CEO Chris Ziegler. "This acquisition gives us access to greater financial strength, which, when coupled with AGL Resources' risk management and wholesale services, is expected to be a great catalyst for growth."
AGL Resources said Compass Energy's earnings results will be reported through the company's wholesale services segment. An AGL spokesman added that the current staff of Compass Energy will be rolled into the company.
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