Just Energy "Actively Looking" At M&A, Inorganic Growth

With the completion of several financing activities to reduce debt and put its balance sheet in order, Just Energy is now set to undertake "aggressive" growth, including inorganic growth, Just Energy co-CEO Deb Merril said during an earnings call yesterday.

Merril cited four avenues of growth for the company: geographic expansion, expanded sales channels, new products and services, and inorganic growth.

Regarding inorganic growth, executives said that acquisitions could focus on companies that expand Just Energy's geographic presence, sales channels, or capabilities. Additionally, acquisitions which accelerate the company's market entry into a new territory (such as the recent acquisition of SWDirekt in Germany, see story here) are a focus.

Purchases of books are also possible if they provide the right value, executives said. In terms of non-commodity products, executives said that Just Energy prefers to use partners for providing such services rather than owning such companies outright, and does not foresee a focus on purchasing such non-commodity service providers, but would not rule out such a transaction if the right opportunity presented itself, executives said.

In terms of sales channels, Merril disclosed that Just Energy has begun selling inside retail storefronts, click here for our related story today for more details

Merril also cited expansion of affinity sales, authorized agents, and telemarketing as supporting Just Energy's aggressive growth plans.

Geographically, Just Energy recently received its license in Ireland and expects to begin marketing there in several quarters, once testing is complete.

Executives also cited, additional European markets, notably Spain and The Netherlands, and Japan, as additional areas for geographic growth.

Regarding growth through new products, Just Energy cited its recently announced exclusive partnership with Skydrop, a manufacturer of digital, self-regulating smart home irrigation systems (see story here)