Just Energy Group, Inc. has closed its previously announced sale of National Energy Corporation (which operates under the name National Home Services), its water heater and HVAC home services business, to Reliance Comfort Limited Partnership.

The purchase price received was $505 million subject to certain adjustments, including working capital balances (all $ Canadian).

Just Energy co-CEOs Deb Merril and James Lewis stated: “We are very excited to have completed the sale of this non-core business. Our priority has been the reduction of Company debt levels and the net proceeds of this sale will be applied to our outstanding debt. Subject to a final working capital adjustment, we estimate the sale will result in the repayment of $260 million in NHS debt with remaining net proceeds of approximately $160 million being applied to other Just Energy net debt. This debt repayment will move Just Energy’s net debt to EBITDA to 3.6 times, closer to its long term target of 3 times. At the end of fiscal 2014, the ratio was over 6 times. We are excited about and remain committed to growing our core energy business through innovative energy products that provide our customers with real value.”

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Just Energy   M&A  

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