Energtek Inc., New York, N.Y., a company specializing in adsorbed natural gas technology, said it will acquire HOP Energy Holdings, Inc., White Plains, N.Y., for a cash purchase price of $65 million.
HOP is a full-service energy company, serving about 80,000 commercial and residential customers, Energtek said in a statement announcing the planned acquisition. Energtek expects to use HOP as a platform to deploy its mobile natural gas technology to further its strategic goal of making natural gas available to previously unserved areas at affordable prices, according to a statement.
Energtek develops and applies mobile energy transportation solutions for small, mid-size and large industrial, residential and agricultural consumers and fleets of small vehicles. Energtek offers what it calls cost-effective natural gas delivery solutions based on pipe-less technologies and products. Energtek’s solutions allow consumers who are not connected to a pipeline to take advantage of natural gas.
The merger, which is subject to customary closing conditions, is anticipated to be completed during the fourth quarter of 2016. As of the closing, the combined group will be renamed American Mobile Power, Inc., Energtek said in its Sept. 21 statement.
Yoav Krill, chief executive officer of Energtek, said, “We are acquiring a leading energy distributor on the East Coast, with thousands of clients, sizeable revenues, profits and an experienced management team. The execution of the merger agreement is the product of months of negotiations and hard work by all involved. I wish to thank the HOP owners and management for their leadership and cooperation.”
Energtek’s executive vice chairman, Marshall Cogan, said, “Our effort is directed toward revitalizing the company’s strategy and turning Energtek into a substantial player in the market of mobile energy, supplying affordable energy to households and small-to-medium businesses. The synergies that we expect to achieve by this acquisition will enable us to play a significant role in product diversification to suppliers and consumers, with considerable improvements to the margins of this industry.”
Michael Anton, president and chief executive officer of HOP, said, “Joining forces with Energtek in a combined company will enable us to reaffirm our dedication to taking care of our many customers, whether residential or commercial. We shall strive to increase our size and resources to meet their needs on a day-to-day basis as well as in emergency situations. We also look forward to expanding the range of our services, and to be able to add natural gas to the current mix of heating oil, liquid fuels and propane.”