UMS Group is an international Management Consulting firm specializing in enterprise-level value creation and performance management solutions. We combine experienced consultants and seasoned industry professionals with world class tools and intellectual capital to assist our clients in diagnosing problems, designing solutions, and implementing change.
June 18, 2004
TXU Corp. Announcnes Sale of Oncor Utility Solutions to UMS Group
TXU Corp. announced today that it has agreed to sell Oncor Utility Solutions consulting and asset management business to UMS Group, a global utility consulting company headquartered in Parsippany, effective June 18, 2004. The terms of the transaction were not disclosed. Oncor Utility Solutions, a wholly owned subsidiary of TXU, was formed in September 2001 to provide asset management, design and project management, resource management, supply chain consulting, emergency preparedness, and other services to investor-owned utilities and cooperatives in North America. UMS Group, which has extensive experience in business growth strategies for the utility industry, assisted Oncor Utility Solutions in launching the unregulated business.
Under the terms of the transaction, UMS Group will assume ownership of all Oncor Utility Solutions consulting and asset management contracts and will continue marketing efforts begun by Oncor Utility Solutions. Oncor Utility Solutions has approximately 12 contracts, including asset management outsourcing contracts with two Canadian utilities, Essex Power and Erie-Thames Power, in Ontario. The transaction will have no material effect on TXU's earnings or cash flows and reflects TXU's continued focus on its core businesses.
"Although Oncor Utility Solutions was beginning to gain some momentum, it's not core to TXU's business. Oncor Utility Solutions and UMS Group are a better fit and share the same business model," said Wade Freeman, executive vice president, Oncor Utility Solutions. "We're pleased that UMS Group, with its broad experience in utility consulting throughout the United States, Europe, Australia, Asia, and other parts of the world, will now be providing services to our clients."
"UMS Group is excited about the opportunity to further expand our asset management outsourcing expertise. Our history with Oncor Utility Solutions and experience in providing asset management services ensures Oncor Utility Solutions customers will continue to receive the same high quality service. This acquisition also brings a wealth of new capabilities to our existing and future clients," said Jack Shearman, chief executive of UMS Group.
Shearman added that UMS Group plans to fully leverage its experienced staff, best practices, and asset management tools to bring maximum value to clients and partners in this business.
"This is an area ripe for innovation and ready for better integration of systems, stronger
performance management and more timely and effective information for decision making. At the bottom line, we believe that asset management outsourcing has the potential to significantly
improve return on
assets in the utility industry," he said.