Just Energy Group Inc. Announces Expansion Into Germany Through Acquisition of 95% of db SWDirekt
TORONTO, ONTARIO--(Marketwired - Dec. 12, 2016) - Just Energy Group Inc. (TSX:JE)(NYSE:JE), a leading retail energy provider specializing in electricity and natural gas commodities, energy efficiency solutions, and renewable energy options, today announced that it plans to enter the German retail energy market through the acquisition of db swdirekt GmbH ("SWDirekt"). SWDirekt is a provider of natural gas and power to consumers in Germany.
Just Energy has acquired 95 percent of the issued and outstanding shares of SWDirekt for EUR3,350,000, subject to customary closing adjustments. Additional terms of the deal include a EUR1,600,000 payment upon the achievement of sales targets, and an earn-out of 5 percent of cumulative positive EBITDA in each fiscal year up to a maximum aggregate earn-out payment of EUR25,000,000.
Deborah Merril, Co-CEO of Just Energy, said: "This exciting acquisition provides Just Energy immediate access to the largest energy market in continental Europe, accelerating our market entry substantially while also adding a talented local team in Germany to facilitate our growth. We are confident in our ability to combine our core competencies, experience, and depth of product offering with the local expertise and leadership of SWDirekt as we seek access to over 50 million gas and power meters in Germany. In line with our growth strategy, we believe we can continue to disrupt the utility markets with new channels and products while creating strong residential and commercial customer relationships. In addition, this acquisition provides Just Energy with an entry point into other attractive continental European markets where we see tremendous opportunities to grow our platform."
Rebecca MacDonald, Executive Chair of Just Energy, added: "This is an exciting time for Just Energy. In a relatively short period of time, our management team has successfully executed a global enterprise strategy that has resulted in a much stronger Company. These actions are consistent with the Company's plan to aggressively pursue profitable growth as it seeks to become the world's leading global energy management solutions provider. The Board of Directors and I fully support management's strategy and believe Just Energy's best days are still ahead."