Press release from CNW Group
Crius Energy Trust announces acquisition of customer portfolio
Monday, April 07, 2014
Crius Energy Trust announces acquisition of customer portfolio07:00 EDT Monday, April 07, 2014
Strengthens geographic diversity and increases commercial customer base
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
TORONTO, April 7, 2014 /CNW/ - Crius Energy Trust (TSX: KWH.UN), today announced that Crius Energy LLC, a comprehensive energy solutions provider, has executed, through its affiliates, a binding agreement to acquire the U.S. retail energy customer portfolio of Superior Plus Energy Services, a division of Superior Plus Corp. (TSX: SPB). The acquisition includes approximately 20,000 residential and small commercial customer accounts totaling approximately 40,000 residential customer equivalents.
The acquisition strengthens the company's geographic footprint in New York and Pennsylvania and adds to its growing portfolio of fixed rate accounts. In addition, the transaction furthers the ongoing diversification of its customer mix by increasing the company's overall commercial customer base by approximately 15%. Customers added through the acquisition will not experience any change to their service and will be seamlessly transitioned either to Public Power or FTR Energy Services, two of Crius Energy's retail brands, based on location and service type.
"This is an important acquisition for us that furthers our diversification efforts and leverages our multi-channel platform for growth," said Michael Fallquist, Chief Executive Officer of the Trust and Crius Energy. "We welcome the customers to the Crius Energy family of brands and are committed to a smooth transition that will be seamless from a customer perspective."
With a purchase price of up to $120 per residential customer equivalent and minimal incremental operating cost, the company is confident the acquisition will be accretive to earnings and gross margin in 2014.
"This transaction is an excellent opportunity for us to benefit from our recently expanded credit facility with Macquarie Energy," said Fallquist. "We are actively pursuing other acquisition targets and are confident that we have sufficient cash availability to execute on other accretive transactions. We remain focused on our goal to grow and diversify our cash flows to support long-term distributions for our unitholders which includes growth both organically and through acquisitions."
About Crius Energy
Crius Energy Trust has been established to provide investors with a distribution-producing investment through the acquisition of a 26.8% ownership interest in Crius Energy. With over 610,000 residential customer equivalents, Crius Energy is a comprehensive energy solutions partner that provides electricity, natural gas and solar products to residential and commercial customers. Crius Energy connects with energy customers through an innovative family-of-brands strategy and multi-channel marketing approach. This unique combination creates multiple access points to a broad suite of energy products and services that make it easier for consumers to make informed decisions about their energy needs. With headquarters in Stamford, Connecticut, Crius Energy currently sells electricity, natural gas and/or solar power in 19 states and the District of Columbia. More information is available at www.criusenergytrust.ca.
The Trust intends to qualify as a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act). Material information pertaining to the Trust may be found on www.sedar.com or www.criusenergytrust.ca.
Caution Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable Canadian securities laws, including (but not limited to) statements about the Board's belief that the Bid may represent a responsible investment of funds on hand. A statement is forward-looking when it uses what Crius knows and expects today to make a statement about the future. Forward-looking statements may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. These statements relate to future events or future performance and reflect current assumptions, expectations and estimates of management regarding growth, results of operations, performance, business prospects and opportunities, Canadian economic environment and liability to attract and retain customers. Such forward-looking statements reflect current assumptions, expectations and estimates of management and are based on information currently available to Crius as at the date of this press release.
Forward-looking statements are subject to certain risks and uncertainties, and should not be read as guarantees of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forward-looking statements. These risks, uncertainties and other factors include but are not limited to, Crius Energy's objectives and status as a mutual fund trust and not a SIFT trust, results of operations, financial position or cash flows, customer revenues and margins, customer additions and renewals, customer attrition, customer consumption levels, general and administrative expenses, treatment under governmental regulatory regimes, distributable cash and Crius Energy's expectations and estimates regarding the payment of distributions to unitholders. Such assumptions, expectations, estimates, risks and uncertainties are discussed under "Risk Factors" and "Forward-Looking Statements" in Crius Energy's Annual Information Form dated March 28, 2013. Consequently, we cannot guarantee that any forward-looking statements will materialize. Readers should not place any undue reliance on such forward-looking statements.
SOURCE Crius Energy Trust
For further information:
Chief Executive Officer
Chief Financial Officer
(416) 815-0700 ext. 290