Press release from PR Newswire
Fulcrum Power Services Announces Sale of Its Retail Electricity Business to Just Energy Group
Thursday, August 25, 2011
HOUSTON, Aug. 25, 2011 /PRNewswire/ -- Fulcrum Power Services, LP today announced the sale of its retail electricity business, Fulcrum Retail Holdings ("Fulcrum") to the Just Energy (U.S.) Corp ("Just Energy"), a wholly owned subsidiary of Just Energy Group, Inc. (TSX-JE) . Fulcrum consists of three major brands: Tara Energy, Amigo Energy, and Smart Prepaid Electric.
"We are excited to become part of Just Energy and believe that this transaction presents a unique opportunity for us to continue to enhance our service offerings and marketing channels in Texas and across the nation," said GP Manalac, CEO of Fulcrum. He further added: "this transaction will enhance our ability to offer competitive products nationwide and maintain the highly-acclaimed customer service standards for all our brands."
Rebecca MacDonald, Executive Chair of Just Energy, noted: "Fulcrum is a natural fit for Just Energy. The company offers expertise in targeted and affinity marketing and their 240,000 RCEs accumulated since 2002 is evidence of their success in this channel. I am looking forward to working with the Fulcrum team upon closing of the acquisition."
Ken Hartwick, CEO of Just Energy, added: "Fulcrum clearly complements and enhances our business platform. Our JustGreen offerings will fit well with their product mix, offering their affinity partners an attractive addition to Fulcrum's product suite."
Tara Energy was founded in 2002 and the company primarily serves a variety of affinity customers in both commercial and residential markets. Amigo Energy primarily serves residential customers in Texas and is consistently ranked amongst the highest in customer satisfaction ratings. Smart Prepaid Electric offers competitively priced prepaid products.
UBS Investment Bank acted as the exclusive financial advisor to Fulcrum in this transaction.
The transaction is pending customary regulatory approvals and is expected to close on or about October 1, 2011.
About Fulcrum Retail Holdings
Fulcrum has an established and diverse customer base in the State of Texas. Fulcrum sells fixed and index energy products with an average term of 18 months, but as long as 60 months and is primarily focused on online, targeted marketing, and affinity relationship sales channels. Fulcrum also offers prepaid and month-to-month products. Fulcrum operates under the Tara Energy (www.taraenergy.com), Amigo Energy (www.amigoenergy.com), and Smart Prepaid Electric (www.smartprepaidelectric.com) brands.
About Just Energy Group
Just Energy's business primarily involves the sale of natural gas and/or electricity to residential and commercial customers under long-term fixed-price, price-protected or variable-priced contracts and green energy products and has a presence in 18 markets in the US and Canada. Just Energy also offers "green" products through its JustGreen and JustClean programs. The gas JustGreen product offers carbon offset credits which will allow the customer to reduce or eliminate the carbon footprint of their home or business. JustClean products allow customers in certain jurisdictions to offset their carbon footprint without purchasing commodity from Just Energy. In addition, Just Energy also has other businesses including National Home Services, Terra Grain Fuels, and Hudson Solar. Just Energy's revenues for the fiscal year ending March 2011 were $2.95Billion.
SOURCE Fulcrum Power Services, LP
For further information: Malik Jamal, Director, Marketing of Fulcrum Power Services, LP, +1-713-979-1313