November 09, 2007 // Franchising.com // NEW YORK, New York — The Bear Stearns Companies Inc. (NYSE:BSC) today announced its subsidiary Bear Energy LP has completed the purchase of substantially all of the power assets of Williams Power Company, Inc., a subsidiary of Williams (NYSE:WMB). As part of the transaction, which was announced in May, Bear Energy has acquired approximately 7,500 megawatts of gas-fired tolling capacity, 1,800 megawatts of full requirements power supply contracts with cooperatives in Georgia and Pennsylvania, and an associated trading book. Bear Energy will also hire more than 30 Williams Power Company employees.
"The energy business represents an important strategic opportunity for our firm," said Bear Stearns chairman and chief executive officer James E. Cayne. "As we have steadily built our energy business over the last two years we have sought to broaden our footprint and diversify our revenue streams in this area. This transaction provides us with a significant step forward in achieving these objectives."
"Bear Energy now has one of the largest natural gas power generation portfolios in the United States which enables us to provide unique solutions to our energy clients," said Paul Posoli, President of Bear Energy. "We are capitalizing on our expertise in the physical power and gas markets, building a geographically diverse platform and broadening our relationships with existing and new customers with this transaction."
Bear Stearns owns, controls, or provides services to approximately 9,000 megawatts of power in parts of the Northeast, Midwest, the South and West Coast. Bear Energy trades natural gas, electricity, coal, emissions, renewable energy, weather and crude oil.
The transaction is expected to be accretive to earnings and earnings per share in fiscal 2008.
Bear Stearns was advised by its investment banking division on the transaction.
About Bear Energy:
Bear Energy was founded in 2006 to provide flexible, comprehensive energy solutions in the physical and financial energy markets for clients across the energy value chain. Headquartered in Houston, Texas, Bear Energy currently employs an experienced team of 200 energy professionals with expertise in natural gas, electricity, coal, emissions and weather. As a wholly owned subsidiary of The Bear Stearns Companies Inc., all transactions are guaranteed by the A1/A/A+ rated parent, offering customers the credit quality now required in the volatile energy markets. To learn more about Bear Energy, please visit www.bearenergy.com.
About Bear Stearns:
Founded in 1923, The Bear Stearns Companies Inc. (NYSE: BSC) is a leading financial services firm serving governments, corporations, institutions and individuals worldwide. The Company's core business lines include institutional equities, fixed income, investment banking, global clearing services, asset management, and private client services. Headquartered in New York City, the company has approximately 15,000 employees worldwide. For additional information about Bear Stearns, please visit the firm's web site at www.bearstearns.com.
Founded in 1923, The Bear Stearns Companies Inc. (NYSE:BSC) is a leading financial services firm serving governments, corporations, institutions and individuals worldwide.