CHP business acquired by Centrica for £145m
CENTRICA has bought ENER-G Cogen International, the Salford-headquartered supplier and operator of combined heat and power (CHP) systems, from ENER-G Holdings for £145m.
ENER-G Cogen has around 1,400 units totalling over 500MW under contract with a growing customer book.
The business, which employs around 350 staff, operates predominantly in the UK but also has operations in the US, Hungary, Italy, the Netherlands and Romania and has a strong, diverse customer base across private and public sectors. It also has a presence in Australia, Ireland, Japan, Canada and Turkey through sales partnerships with local entities.
It will form part of Centrica’s new international Distributed Energy & Power business and Centrica said it complements its existing capability in installing and managing distributed systems for customers in both the UK and US.
Alan Barlow, managing director of ENER-G Cogen said: “The team at ENER-G Cogen International are very excited to become an integral part of Centrica’s Distributed Energy & Power business. We believe our combined technology offering, sector knowledge and ability to deliver integrated customer focused energy solutions will leave us well placed to grow in the international distributed energy sector.”
Iain Conn, chief executive of Centrica said: “We are building an international Distributed Energy & Power business, as demand for CHP products and other distributed energy technologies grow. This acquisition strengthens our delivery capability, both in the UK and internationally.
“The ENER-G Cogen team has an impressive track record in delivering both off-the-shelf and bespoke solutions for a variety of customers, from initial design through to installation, operation and maintenance. This is an important step forward in accelerating our customer-facing strategy to deliver what our business customers need.”
Centrica said the acquisition of ENER-G Cogen will immediately contribute to cash flow and earnings.