DPL Inc. (DPL) has agreed to buy a Chicago-based retail power company MC Squared Energy Services LLC (mc2). The company said it will carry out the transaction through its retail electric subsidiary, DPL Energy Resources (DPLER), who will act as the buyer. 

DPL Energy Resources currently markets electricity to commercial and business customers in Ohio. As part of the transaction DPL will acquire over 2,000 customer accounts in northern Illinois, which are currently managed by MC Squared.

With the acquisition, DPL said it will acquire the benefits of MC Squared’s experienced management team which has extensive retail operating skill in competitive electricity markets. The company said that MC Squared’s successful business model will complement its existing Ohio retail market activity and provide a platform to expand into other attractive markets.

MC Squared provides retail electricity supply as a licensed electricity supplier in Illinois. MC Squared is uniquely positioned to offer customers a full range of reliable electricity supply products, including green renewable energy.

DPL Inc. is a regional energy company, with principal subsidiaries including The Dayton Power and Light Co., DPL Energy LLC and DPL Energy Resources Inc. The company mainly competes with American Electric Power Co. Inc. (AEP) and Duke Energy Corporation (DUK).

Last month, DPL reported fourth quarter and full-year 2010 earnings per share of 62 cents and $2.50, beating the Zacks Consensus Estimate for both the periods. For fiscal 2011, DPL reaffirmed its earnings guidance of $2.30 – $2.55 per share.

Currently, the Zacks Consensus estimate for the company’s 2011 earnings is $2.42 per share, which stands within the company’s guidance. Fiscal 2012 Zacks estimate is $2.47 per share.

We maintain our long-term Neutral rating on the stock. DPL currently retains a Zacks #4 Rank (short-term Sell rating).

 
AMER ELEC PWR (AEP): Free Stock Analysis Report
 
DPL INC (DPL): Free Stock Analysis Report
 
DUKE ENERGY CP (DUK): Free Stock Analysis Report
 
Zacks Investment Research