Company Acquisitions in Today’s Business Environment

Eric Fornell

Eric Fornell

A graduate of Oxford University and Amherst College, Eric Fornell is the vice chairman of investment banking at Wells Fargo Securities, New York. Tasked with providing financial support to Wells Fargo clients in the energy and utility industries across North America, Eric Fornell played a lead role in advising TransCanada PipeLines Limited in its acquisition of Columbia Pipeline Group.

In an acquisition, one company takes over most or all of another company’s ownership. The company taking ownership is called the acquiring company, while the company being acquired is called the target company.

An acquisition is said to have occurred when the acquiring company purchases more than 50 percent of the target company. This ownership is evidenced by control of the target’s assets or stock. The goal of the acquiring company may be to increase market share, expand its product offerings, or expand its asset base.

Acquisitions may be either friendly or hostile. In friendly acquisitions, the target company agrees to be acquired and plays a role in ensuring the completion of the purchase. In hostile acquisitions, the target does not agree to be acquired and the acquiring firm often resorts to aggressive tactics to complete the acquisition.

NextEra Energy Partners Completes Acquisition of NET Midstream

NextEra Energy Partners pic

NextEra Energy Partners
Image: finance.yahoo.com

At Wells Fargo Securities, Eric Fornell serves as vice chairman of investment banking and capital markets, where he is dedicated to the energy and power sector. An industry veteran with over 30 years of experience, Eric Fornell played a role as financial advisor in an acquisition made by one of Wells Fargo Securities’ clients, NextEra Energy Partners.

NextEra Energy Partners (NEP) manages and owns clean energy projects throughout North America and has natural gas projects in the state of Texas. On October 5, 2015, NEP completed an approximately $2.1 billion acquisition of NET Midstream. NET Midstream is an owner-operator of seven natural gas pipelines in Texas. With the NET Midstream purchase, NEP is looking to strengthen its presence in the natural gas pipeline space.

In addition to the NET Midstream acquisition, NEP announced the concurrent procurement of Jericho Wind Energy Center in Ontario, Canada. These businesses play an important role in NEP’s long-term growth strategy.