CARILLION, the £1.5bn Wolverhampton-based engineering and support services giant, has announced the acquisition of green energy specialist Eaga in a deal worth more than £300m.
The boards of the two firms announced this morning they had agreed a recommended a cash acquisition at a value of 120p per Eaga share, with a 40% share alternative valuing New Carillion shares at 385.2p.
The acquisition, together with the interim dividend, values Eaga at approximately £306.5 million.
Carillion said there was a “compelling strategic rationale” for the combination, which brings together two complementary companies. “The move f urther enhances Carillion’s leading position in the UK support services market, creating a business with a combined support services revenue of approximately £3 billion,” it said in this morning’s announcement.
The group said it expected to achieve synergies in the enlarged group of £9 million by the end of 2013, with one-off costs of £15 million.
Carillion chairman Philip Rogerson 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.”
Charles Berry, Chairman of Eaga, 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.”
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