2014-04-22 08:43:03 -
Energy Assets Group plc (“Energy Assets” or the “Group”)
Acquisition of BGlobal Metering Limited
Energy Assets Group plc (LSE: EAS.L), the largest independent provider of industrial and commercial (I&C) gas metering services in the UK (i), is delighted to announce that it has reached an agreement with Bglobal plc to acquire the entire issued ordinary share capital of BGlobal Metering Limited (BGM) for a cash consideration of £2.3m which includes payment of £0.2m for the completion cash balance. The acquisition is made on a debt free basis with a working capital adjustment mechanism in place post completion.
Based in Blackburn, BGM is a wholly owned subsidiary of Bglobal plc and provides advanced metering technology to the UK I&C electricity sector.
This includes the
supply and installation of smart electricity meters, meter operator services (MOP), and the ongoing collection and aggregation of energy data (DCDA). BGM is a fully accredited MOP and DCDA and provides MOP services to utility companies for circa 60,000 meter points and DCDA services for in excess of 90,000 meter points.
Following completion of the transaction, Energy Assets will provide management services for circa 161,000 meters and will retrieve data from circa 152,500 meter points across the combined gas, water and electricity sectors (ii).
The BGM acquisition provides Energy Assets with the systems, accreditations and expertise to successfully operate as a leading service provider in the electricity sector and is in line with the Group’s strategy to offer metering and associated energy services across a multi-utility platform. The Energy Assets and BGM offerings are extremely complementary and both businesses deliver services to a number of energy providers, energy brokers and a significant number of end user clients. Completion of the acquisition will reinforce Energy Assets as a leading metering services provider and creates cross-selling opportunities to the wider business. It will also provide an opportunity to extend the Group’s successful existing Siteworks activities into the electricity market.
The Energy Assets directors are confident that, following integration into the Group, the BGM business will be earnings enhancing within 12 months of the acquisition date. BGM had gross assets of £4.0m at 31 March 2013. The business generated revenues of £7.4m, over half of which are recurring revenues, and incurred a loss before tax of £1.5m (after exceptional asset impairment and intra-group management charges of £0.7m) for the year ended 31 March 2013.
Transaction consideration will be funded from the Group’s cash reserves in line with the Group’s strategy of pursuing attractive opportunities and making acquisitions which add value to the business.
Phil Bellamy-Lee, Chief Executive of Energy Assets, commented.
“I am delighted to announce the acquisition of BGlobal Metering Limited from Bglobal plc. This transaction enables Energy Assets to expand its presence into the electricity sector and is a significant step in the delivery of the Group’s strategy to offer services across a multi-utility platform. With continued focus on delivering value added services to the expanded utility and commercial client base, this acquisition also provides the Group with further opportunities for growth as well as enhancing our market position and increasing shareholder value in the near term.”
Tim Jackson-Smith, Chief Executive of Bglobal plc, commented.
“In line with our strategic plan to deliver value for shareholders, I am pleased to announce the sale of BGlobal Metering Limited to Energy Assets Group plc. I would like to thank all of the staff at BGlobal Metering for their hard work and commitment, particularly over the last 6 months, and I am confident that they and the business will have a bright future as part of the Energy Assets Group.”
(i) By number of meters owned and managed
(ii) Based on asset numbers at 31 March 2014
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EnquiriesFor further information visit www.energyassets.co.uk : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
contact:Energy Assets Group plcPhil Bellamy-Lee /
John McMorrowTel: +44 (0)1506 405 405orBuchananRichard
Darby / Clare Akhurst / Louise MasonTel: +44 (0)20 7466 5000orNumis
Securities LimitedCharlie Farquhar / Stuart SkinnerTel:
+44 (0)20 7260 1000orMacquarie Capital (Europe) LimitedSteve
Baldwin / Nicholas Harland / Jack WilliamsTel: +44 (0)20 3037 2000