Crius Energy Trust (TSX:KWH.UN, StockForum), a Toronto-based entity holding 26.8% ownership interest in energy solutions partner, Crius Energy, announced today that the company had executed through its affiliates, a binding agreement to purchase the US retail energy customer portfolio of Superior Plus Energy Services, a division of Superior Plus (TSX:SPB, StockForum).
According to the news release, the acquisition included an estimated 20,000 residential and small commercial customer accounts resulting in approximately 40,000 residential customer equivalents.
The purchase grows Crius' footprint in New York and Pennsylvania and further diversifies its customer mix by upping the company's overall commercial customer base by an estimated 15%. Customers will not be affected by acquisition and will be seamlessly transitioned to either two of Crius' retail energy brands, Public Power or FTR Energy Services.
The release went on to note that company paid up to $120 per residential customer equivalent with a minimal incremental operating cost and it expects the acquisition to be accretive to earnings and gross margin in 2014.
Company CEO, Michael Fallquist, commented on the transaction, “This transaction is an excellent opportunity for us to benefit from our recently expanded credit facility with Macquarie Energy.”
He then went on to conclude, “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.”
Crius Energy Trust was in the news recently when the company reported Q4 and year-end 2013 financial results.
Shares climbed 11.89% on the news to $4.14 per share.
Currently there are 10.0m outstanding shares with a market cap of $41.5 million.