Attractive acquisition provides access to Texas, a commercial platform, portfolio diversification and 200,000 RCEs

TORONTO, Feb. 17, 2015 /CNW/ - Crius Energy Trust (TSX:KWH-UN.TO - News) ("Crius" or "the Trust") today announced that Crius Energy LLC ("Crius Energy") has entered into a binding share purchase agreement to acquire all of the outstanding equity interests in TriEagle Energy LP ("TriEagle"), a Houston-based energy retailer, for an aggregate purchase price of approximatelyUS$22 million, subject to regulatory and other approvals. The acquisition adds a diverse portfolio of residential, commercial and municipal aggregation customers totaling approximately 200,000 residential customer equivalents (RCEs) in Texas, Pennsylvania, and New Jersey.

"We are pleased to welcome a pioneer in deregulated energy to the Crius family of brands," saidMichael Fallquist, Chief Executive Officer of the Trust and Crius Energy. "This acquisition, our largest since IPO, is consistent with our strategy to act upon attractive opportunities to drive growth while diversifying our portfolio and is expected to be accretive in its first full year. We plan to leverage this acquisition for entry into Texas through multiple Crius distribution channels and will immediately begin to work with the talented TriEagle team to significantly expand our commercial business across all Crius markets."

This transaction accelerates the ongoing diversification of Crius Energy's customer portfolio by increasing the company's overall number of commercial customers, fixed rate accounts, and adding a significant customer base in Texas. In addition, the acquisition broadens Crius Energy's distribution capabilities through an expanded commercial broker network and a track record with municipal aggregations.

"Crius is committed to a smooth transition that will be seamless for our customers," explained Fallquist. "TriEagle customers will continue to benefit from the strong value propositions and innovative products offered by this well-respected leader in the Texas retail energy industry, now backed by the proven strategy and financial resources of Crius Energy."

The acquisition is expected to close early in the second quarter of 2015, and will be funded by cash and availability under the company's credit facility with Macquarie Energy LLC. The US$22.2 million purchase price is made up of US$18.8 million in cash and US$3.4 million in phantom unit rights which will be settled in cash based on future trading prices of Trust units on the Toronto Stock Exchange over a two-year vesting schedule. Crius expects the acquisition to provide revenue and operational synergies and be accretive to distributable cash flow per unit in 2015.

"This acquisition, combined with our strong recent results, firmly positions Crius to continue to deliver long-term sustainable distributions," added Fallquist. "We are proud to enter 2015 with a transaction that we believe will deliver accretive value for the company, and perhaps even more significant, it is with confidence and excitement that we look toward how this acquisition enhances our organic growth potential through an immediate entry into Texas, the largest deregulated market in the United States, and the addition of a highly successful commercial platform."