TORONTO, CANADA / ACCESSWIRE / April 7, 2014 / ONEnergy Inc. (“ONEnergy” or the “Corporation”) (TSXV: OEG and OEG.A), a growing provider of innovative energy and energy conservation products to residential, industrial and commercial customers in North America, announced it has agreed to acquire The Home Comfort Group Inc. (“HCG”), a leading provider of high quality, eco-friendly heating, ventilation and air conditioning (“HVAC”) products and solutions to homeowners in Ontario, Alberta and Manitoba, for total consideration of $3.4 million. The all-cash transaction is expected to be immediately accretive to cash flow, and is scheduled to close by the end of April 2014, subject to closing conditions typical for transactions of this type.
Founded by Mark Klavir, HCG is a well-established leader in the residential HVAC rentals, sales and installation business and provides heating and air conditioning equipment, tankless and conventional hot water systems and other in-home and commercial appliances, products and services. The Company drives revenue through the sales, rental and installation of high quality, energy-efficient HVAC systems, providing the business with long-lived, stable annuity-type cash flows and “sticky” customer relationships. HGC has a growing customer base in multiple Canadian provinces, and today serves over 4,000 customers. These customers are serviced by a focused, professional installation, service and sales staff. Mr. Klavir will continue to lead the business post-closing and will join ONEnergy as Vice President, Home Comfort division.
The acquisition of HCG is expected to be synergistic with ONEnergy’s Sunwave Gas & Power business (“Sunwave”), with multiple cross-selling opportunities for both businesses. In addition, ONEnergy has identified a number of cost-out opportunities to further improve profitability of the combined businesses. ONEnergy also expects the combined businesses will be well positioned to accelerate the launch of new products and services in Canada and the US, both in existing service territories as well as in new markets.
“This important transaction expands our customer base, accelerates our growing range of product offerings and extends our reach into new markets in Canada.” stated Mark J. Lewis, CEO of ONEnergy. “Our objective is to grow our business across North America by offering a variety of value-added products and services that save our customers money, improve their quality of life and that are good for the environment. HCG has an excellent product and service offering, strong growth and an excellent reputation, all of which are attributes that fit well in our model. We view this as a great opportunity to benefit from operating synergies, grow our top and bottom line as well as add products and services that fit well with our US expansion.”
“The opportunity to join forces with ONEnergy was very compelling” said Mark Klavir, founder of HCG. “We have a shared vision of building a world-class energy services business, with our customers considering us their trusted provider for all of their energy needs. I’m excited about the tremendous possibilities for our combined businesses”.
ONEnergy is pursuing a two-pronged strategy of building its core energy retailing business through organic and inorganic customer growth initiatives, while also increasing the value of each customer. The Corporation is strengthening and growing its energy retailing business through the organic expansion of its Canadian customer base, as well as via its ongoing expansion into the US Northeast markets. Additionally, ONEnergy is actively evaluating potential acquisitions of existing small to mid-size energy retailers in key US markets. The North American energy retailing industry is robust, but highly fragmented, and the Corporation expects further retail supplier consolidation.
In addition to growing its customer base, ONEnergy will focus on continually improving and expanding the value proposition offered to customers by offering complementary services and products as part of their relationship with ONEnergy. The retail energy markets are experiencing a paradigm shift where customers are demanding a more comprehensive relationship with their energy provider. ONEnergy is at the forefront of this shift and is taking steps to provide a comprehensive menu of value-added services designed to enhance the customers experience and range of services, increasing the margin derived from each customer while improving customer retention.
“The addition of HCG is a significant step forward in making ONEnergy’s service offerings more compelling and value-added for our customers. We will continue to identify additional opportunities that will enhance the overall experience our customers have with ONEnergy, and that will grow our customer base,” concluded Mr. Lewis.
About The Home Comfort Group Inc.
The Home Comfort Group Inc. is a Canadian company that helps consumers save money on energy bills by reducing household energy costs through the installation of energy-efficient home equipment such as furnaces, boilers and air conditioners. In addition to providing a variety of high quality, eco-friendly HVAC solutions for the home, the Company provides the highest level of personal service to assist customers in choosing and financing a system that meets their needs. Founded in 2011 and based in Toronto, Ontario, HCG has operations in Ontario, Alberta, and Manitoba.
About ONEnergy Inc.
ONEnergy, through Sunwave (www.gosunwave.com), is a licensed provider of innovative energy products to residential, industrial and commercial customers. ONEnergy provides homeowners and business with competitively priced conventional and environmentally-friendly “green” natural gas and electricity in Ontario and electricity in Connecticut and Pennsylvania.
ONEnergy shares are listed on the TSX Venture Exchange under the symbols “OEG” for Multiple Voting Shares and “OEG.A” for Subordinate Voting Shares. ONEnergy’s website may be found at http://www.onenergyinc.com/
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The corporate information contained in this release includes forward-looking statements regarding future events and the future performance of ONEnergy and its subsidiaries that involve risks and uncertainties that could cause actual results to differ materially. Assumptions used in the preparation of such information, although considered reasonable by ONEnergy at the time of preparation, may prove to be incorrect. The actual results achieved may vary from the information provided herein and the variations may be material. Consequently, there is no representation by ONEnergy that actual results achieved will be the same, in whole or in part, as those forecast.
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