Purchase-based MVC Capital Inc. announced its pending sale of U.S. Gas & Electric, a retail energy supplier headquartered in Mamaroneck, has been terminated after the buyer was unable to satisfy the closing conditions of their agreement.
MVC officials said the sale process will be reopened.
United States Gas & Electric Holdings Inc., a company organized to acquire the MVC Capital company, in October agreed to pay approximately $97.2 million for USG&E, whose family of companies supplies residential and commercial customers in 11 states. The deal, expected to close by Oct. 31, required the buyer to obtain significant third-party financing.
“While we are disappointed USG&E was not sold under the terms of the original agreement, this significant, performing asset provides MVC with optionality,” Michael Tokarz, chairman and portfolio manager of MVC Capital, said in the announcement. He said other potential buyers have expressed interest in purchasing the energy company. Tokarz added that MVC could opt to retain ownership of USG&E “and look to benefit from its consistent operating performance, growth potential and solid cash flow.”
A publicly traded business development company, MVC Capital Inc. makes long-term debt and equity investments in companies in a variety of industries. U.S. Gas & Electric is its largest portfolio holding.
