Crius Energy Trust Announces Acquisition of Customer Portfolio
Accretive acquisition of 15,000 RCEs continues business diversification
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
TORONTO, June 16, 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 purchase agreement to acquire the retail electricity customer portfolio of HOP Energy LLC, a provider of heating oil and petroleum products and related services, for an aggregate purchase price of approximately $1.3 million. The acquisition includes 13,000 residential and small commercial customer accounts totalling approximately 15,000 residential customer equivalents (RCEs) across five states in the northeast U.S.
"This acquisition, our second since the beginning of April, demonstrates our ability to act on accretive opportunities arising from the retail energy market volatility in the first quarter of the year," said Michael Fallquist, Chief Executive Officer. "Consistent with our strategy, this acquisition continues to diversify our portfolio, adding fixed-price contracts and commercial customers across five states. We welcome our new customers and can assure them of a seamless transition to the Crius Energy family."
Customers added through the acquisition will not experience any change to their service and will be transitioned either to Public Power or Viridian Energy services, two of Crius Energy's retail brands, based on location and service type.
"This acquisition further illustrates our ability to leverage our scalable platform for efficient growth as the customers added will require minimal incremental operating cost to serve," added Mr. Fallquist. "We are actively pursuing other acquisition opportunities and will remain disciplined in our approach. We are confident that we have the financial capability to execute on other accretive transactions as they become available. We remain focused on our goal to grow and diversify cash flows to support long-term distributions for our unitholders."
About Crius Energy
The Trust was established to provide investors with a distribution-producing investment through the acquisition of a 26.8% ownership interest in Crius Energy, LLC ("Crius Energy"). With more than 600,000 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. Crius Energy currently sells energy products in 19 states and the District of Columbia with plans to continue expanding its geographic reach.
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 TrustFor further information:
Chief Executive Officer
Chief Financial Officer
(416) 815-0700 ext. 290