Crius Energy Trust completes US $172.5M U.S. Gas & Electric acquisition

pcNewsWireCrius Energy Trust (TSX: KWH.UN) has closed previously announced acquisition of U.S. Gas & Electric, Inc. for US $152.5 million plus US $20 million in working capital, for a total purchase price of approximately US $172.5 million.

U.S. Gas & Electric, Inc. is a leading U.S. energy retailer with natural gas and/or electricity customers in 11 States and D.C.

News Release



Toronto, Ontario – July 5, 2017 – Crius Energy Trust (“Crius” or the “Trust”) (TSX:KWH.UN) today announces the successful completion of the acquisition of U.S. Gas & Electric, Inc. (“U.S. Gas & Electric”), a leading U.S. energy retailer with natural gas and/or electricity customers in 11 States and D.C. (the “Acquisition”), for total consideration of US$152.5 million plus US$20 million in working capital, for a total purchase price of approximately US$172.5 million.

As a result of the Acquisition, Crius has added a diverse portfolio of electricity and natural gas customers, totaling approximately 375,000 residential customer equivalents (“RCEs”) in Connecticut, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania and the District of Columbia. Crius now serves nearly 1.4 million RCEs, representing an approximate 37% increase to the existing customer portfolio, and is now positioned among the 10 largest independent energy retailers in North America.

“We are very pleased to have successfully completed the Acquisition of U.S. Gas & Electric as it represents a highly accretive transaction and a significant milestone for Crius,” commented Michael Fallquist, Chief Executive Officer of the Trust. “We expect to immediately benefit from economies of scale, an expanded service territory and new direct-to-consumer sales channels as we continue to execute on our organic and acquisitive growth strategy. We welcome U.S. Gas & Electric’s strong and well-respected team and are committed to a seamless integration of the businesses.”

Conversion of the Subscription Receipts

In connection with the closing of the Acquisition, the Trust is also pleased to announce that the subscription receipts of the Trust (“Subscription Receipts”) issued pursuant to its previously announced Offering (as defined herein), including the Over-Allotment Option (as defined herein), have been converted, on a one-for-one basis, into 12,908,175 units of the Trust (“Units”) following the satisfaction of the escrow release conditions relating to the closing of the Acquisition (the “Escrow Release Conditions”).

Trading in the Subscription Receipts was halted on the Toronto Stock Exchange effective the morning of July 5, 2017 and has remained halted until close of business on July 5, 2017, at which time the Subscription Receipts are expected to be delisted from the Toronto Stock Exchange.

Background to the Offering

On May 30, 2017, concurrently with the announcement of the Acquisition, Crius entered into an agreement with a syndicate of underwriters led by Desjardins Capital Markets, RBC Capital Markets and National Bank Financial Inc. (collectively, the “Underwriters”), pursuant to which the Underwriters agreed to purchase from Crius, on a “bought deal” basis, and sell to the public 11,224,500 Subscription Receipts at a price of C$9.80 per Subscription Receipt (the “Offering Price”) for total gross proceeds of C$110.0 million (the “Offering”). In addition, the Trust also granted the Underwriters an option (the “Over-Allotment Option”) to purchase up to an additional 1,683,675 Subscription Receipts (the “Additional Subscription Receipts”) at the Offering Price per Additional Subscription Receipt, exercisable in whole or in part, at any time up to 30 days following the closing of the Offering.

On June 20, 2017, the Trust announced the closing of the base offering of 11,224,500 Subscription Receipts at the Offering Price for aggregate gross proceeds of C$110.0 million. On June 27, 2017, the Trust announced the closing in full of the Over-Allotment Option, pursuant to which 1,683,675 Additional Subscription Receipts were issued at the Offering Price for additional aggregate gross proceeds of C$16.5 million.

Following the satisfaction of the Escrow Release Conditions, the escrowed funds were released from escrow to, among other things, enable Crius to fund a portion of the cash purchase price payable in connection with the Acquisition, and to pay the remaining 50% of the commission of the Underwriters.

About Crius Energy Trust

Crius provides investors with a distribution-producing investment through its indirect 100% ownership interest in Crius Energy, LLC (the “Company”). With over 1.3 million RCEs, the Company provides innovative electricity, natural gas and solar products to residential and commercial customers through exclusive partnerships and direct-to-consumer marketing channels. Our unique brands offer consumers a broad suite of energy products and services including fixed and variable contracts, renewable energy, and bundled products to support their energy needs beyond what is offered by their local utility. Company growth is achieved organically with customers acquired through our diversified marketing channels and through accretive acquisitions in the deregulated energy and solar industries, where there is a significant opportunity to participate in the consolidation of market participants. The Company currently sells energy products in 18 states and the District of Columbia with plans to continue expanding its geographic reach. The Company is well positioned to deliver capital appreciation and stable, growing distributions to investors.

The Trust intends to continue 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 Crius may be found on SEDAR under the Trust’s issuer profile at or on the Trust’s website at

For further information please contact:
Michael Fallquist
Chief Executive Officer, Crius Energy Trust
(203) 663-7545
Roop Bhullar
Chief Financial Officer, Crius Energy Trust
(203) 883-9900
Kelly Castledine
Investor Relations, Crius Energy Trust
(416) 644-1753
Source: Crius Energy Trust