Just Energy Sells Georgia Customer Book & Assets, Announces Buyer, Purchase Price
Closes Sale of Irish Business
Announces Annualized Cost Savings Of C$60 million
December 30, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Just Energy Group Inc. ("Just Energy" or "the Company") announced that it has sold all of its customer contracts and natural gas in storage in the State of Georgia to Infinite Energy for approximately US$3.4 million (approximately C$4.4 million), subject to customary adjustments.
"The Georgia market has limited growth possibility and was sub-scale for Just Energy," the Company said
In addition, the Company has closed the previously announced sale of its Irish operations to Flogas Natural Gas Limited for approximately €700 thousand (approximately C$1.0 million), subject to customary adjustments.
"The sale of our Georgia based assets and operations in Ireland, in addition to the earlier sale of our UK operations, are key milestones in our strategy to refine our focus," said Scott Gahn, President and Chief Executive Officer of Just Energy. "These changes to our business structure allow us to concentrate on our stronger growth and higher-margin operations in North America, while reducing costs."
"In late fiscal 2019 and during fiscal 2020, Just Energy identified several opportunities to improve efficiency and profitability. The Company has been implementing these initiatives, including eliminating low-value activities, businesses and overhead, optimizing spending, improving efficiency in its customer care group and refining the quality of its customer base. The impact of these improvements is beginning to yield results and the Company estimates that these improvements will drive savings of approximately C$60 million, net of costs associated with severance and Just Energy’s strategic review process," the Company said
Just Energy's strategic review process initiated in early June is ongoing, the Company said
"The Board’s goal for the strategic review is to unlock value for Just Energy and all its stakeholders with respect to its core North American business. Just Energy has not set a specific timeframe for the conclusion of the strategic review. The Company will provide an update when the Board has approved a specific course of action," the Company said