Energy group acquired in multi-million-pound deal
Yorkshire-based utility management specialist Orchard Energy has been acquired by Miami-based World Fuel Services for £12.4m.
The deal sees Orchard Energy, previously owned by Lakeside, become part of Kinect Energy Group. Orchard Energy, which employs 72 staff and is based in Elland, provides energy management services to more than 1,500 commercial and industrial customers. It also has strong commercial relationships with leading UK utility providers.
The disposal of the entire issued share capital of Orchard to World Fuel Services Europe concluded for a total cash consideration of £12.4m.
According to Lakehouse, a further £1.9m is currently being held in held in escrow in order to shield the firm against any potential claims arising from the sale and purchase agreement. Barring such occurrences, the further capital is to be released in equal instalments on the first and second anniversaries of the deal’s completion.
Amar Hussain, managing director of Orchard Energy, said: “Being part of the Lakehouse Group opened doors to more sectors, as well as national opportunities for Orchard, and we experienced an extensive period of growth.
“This recent acquisition will take that growth to the next level, opening up more national and international links. It really is an exciting time for Orchard and I’m looking forward to seeing what the future holds with Kinect Energy Group.”
Bob Holt, executive chairman of Lakehouse, said: “Orchard is an excellent business that I am sure will thrive under the stewardship of World Fuel Services. I would like to record my thanks to the directors and staff of Orchard for their professionalism and dedication during their time within the Lakehouse Group.”
Kinect Energy Group provides comprehensive energy management and procurement capabilities globally as demand grows within all commercial and industrial sectors. Kinect offers a customer-centric approach to deliver maximum efficiency and performance.
Terry Cogan, vice president EMEA at the Kinect Energy Group, said: “The professional team at Orchard will immediately bring capabilities and expertise renowned in the industry, allowing us to expand our product offering within the UK, Ireland, and Continental Europe.
“We welcome Orchard to the Kinect Energy Group and look forward to working together to meet increasing demand for energy management services in multiple market segments.”
Kinect Energy Group was founded in 2016 and is a global energy management organisation.
World Fuel Services, head-quartered in Miami, provides energy, logistics, and technology solutions to aviation, marine and land customers and suppliers around the world. The company provides services to over 8,000 global locations including oil and energy procurement, consulting services, distribution and storage solutions and fleet and inventory management systems.
