Additional Information
Market: TSX
Sector: Oil & Gas Exploration & Production
Latest Price: 9.01  (-0.66% Descending)
52-week High: 9.13
52-week Low: 4.90
Market Cap: 1,323.70M
1 year chart
1 day chart
Just Energy Group

Just Energy is a leading independent energy supplier with over 1.6 million electricity and natural gas customer accounts across the US and Canada.

Just Energy to buy Fulcrum's retail electricity business in $79m deal

25th Aug 2011, 2:39 pm by Brad Lemaire
Just Energy to buy Fulcrum's retail electricity business in $79m deal

Just Energy Group (TSE:JE) reported Thursday it plans to purchase the retail electricity business of Fulcrum Power Services for $79.4 million.

Just Energy said it would also pay $20 million to Fulcrum 18 months after the deal's close, provided that certain earnings and billed volume targets are met by Fulcrum during the period.

Fulcrum Retail Holdings, which operates under the brands Tara Energy, Amigo Energy and Smart Prepaid Electric, markets in Texas only. Both Tara and Amigo focus on residential and small to mid-size commercial customers, selling mainly through online and targeted marketing channels.

The retail electricity provider has aggregated a current total of 240,000 residential customer equivalents.

"Fulcrum clearly complements and enhances our business platform," said Just Energy CEO, Ken Hartwick.

"Our JustGreen offerings will fit well with their product mix, offering their affinity partners an attractive addition to Fulcrum's product suite. Their key supplier is Shell, a valued member of our supplier pool."

Fulcrum’s CEO, GP Manalac, said the transaction presents a unique opportunity for the company to enhance its service offerings and marketing channels in Texas, as well as in areas where Just Energy already has a presence.

Toronto-based Just Energy said it plans to fund the deal from cash and other working capital, as management expects the acquisition to add to earnings on a fiscal 2012 pro-forma basis.

The deal is slated to be complete by October 1, and is subject to customary closing and regulatory approvals.

Just Energy sells natural gas and electricity to residential and commercial customers under long-term fixed-price contracts.

No investment advice

Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".

You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here