Construction giant Carillion has announced the acquisition of leading residential green energy firm Eaga in a cash deal worth £306.5 million.
The deal paves the way for Carillion to become the UK’s largest independent energy services provider with a combined support services revenue of approximately £3 billion.
Eaga is a green support services company that aims to provides lower carbon emissions and reduced fuel bills through energy efficient central heating and insulation. Clients range from housing providers and utility companies to private households and social landlords.
We have helped drive the Government’s reduction of fuel poverty, improving more than two million homes across the UK.
The company will now look to make cost savings across the group worth £9m which will incur one off costs of approximately £15m.
Carillion chairman Philip Rogerson believes the acquisition brings together two complementary companies and will enhance the group’s overall position.
“The acquisition is expected to be immediately earnings enhancing and builds on Carillion’s previously announced objectives for growth,” he said.
“Carillion has identified the low carbon market as a strategic area of growth and the acquisition of Eaga will create a scalable platform to build the UK’s largest independent energy services provider.
“This will also extend Carillion’s capability to provide integrated support services solutions for its existing customers, for whom energy services are an increasingly important requirement.”
Eaga chairman Charles Berry said: “The offer received from Carillion has come at an interesting time in Eaga’s development, as our markets are changing rapidly.
“While there are exciting future prospects, we believe these are potentially better accessed as part of a larger group. Carillion offers our unique business the opportunity to grow in a strong home; it offers our Partners the prospect of delivering that growth potential, while our shareholders receive a significant cash premium and a partial share alternative which allows them to participate in the Enlarged Group’s future potential.”
The acquisition is now subject to approval by Eaga shareholders, the Financial Services Authority and the courts, and is expected to become effective in April.