Constellation NewEnergy, Inc. entered into an asset purchase agreement to acquire retail and wholesale load-serving business of FirstEnergy Solutions Corp. for $140 million.

Constellation NewEnergy, Inc. entered into an asset purchase agreement to acquire retail and wholesale load-serving business of FirstEnergy Solutions Corp. for $140 million on July 9, 2018. The purchase price is subject to adjustments. The transaction with Constellation does not include the transfer of FES cash collateral posted with various counterparties or FES working capital. The transaction is subject to certain conditions, including Constellation being the winning bidder after a court-supervised Section 363 bankruptcy auction, the approval of the agreement by the United States Bankruptcy Court for the Northern District of Ohio following the auction, and expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is expected to complete in the fourth quarter of 2018. Zach Wittenberg of Akin Gump Strauss Hauer & Feld LLP acted as the legal advisor whereas Lazard acted as the financial advisor to FirstEnergy Solutions on the transaction.