£29m acquisition adds fuel to energy firm’s growth ambitions
Leicester-based energy company Flogas Britain has bought eEnergy’s energy management division in a deal that could be worth up to £40m.
The deal, which is subject to approval by eEnergy’s shareholders next month, is for an initial £29.1m, with up to £10m due based on performance to September 2025.
The purchase price represents around 90% of eEnergy’s current market value, although the division being sold generates less than half of the company’s revenues.
Ivan Trevor, managing director of Flogas Britain, which is part of DCC Energy, said: “Together with Certas and the recent acquisitions of Protech, Centreco and DTGen, this acquisition further expands our capability in energy management services, providing a comprehensive range of products and services to partner with our customers on their journey to Net Zero and supporting our ambition to halve the carbon emissions of the energy we supply by 2030.”
eEnergy will reinvest the proceeds into its energy services division, which has nearly doubled in the past year. It will also repay debt of £8.1m.
Harvey Sinclair, eEnergy chief executive, said: “Once approved by Shareholders, the transaction will unlock significant immediate cash for eEnergy and allow delivering significant additional value to shareholders through the earnout period.
“The sale will simplify our business, strengthen our balance sheet and bring the opportunity to invest further in the higher growth segments of Solar and EV Charging across the UK.”
eEnergy’s shareholders will vote on whether to approve the deal at a general meeting on February 7.
