Sustainable energy firm expands into solar market with £13.7m acquisition
Green energy supplier Good Energy has announced it is to acquire a solar installation business for £13.7m.
The Chippenham firm has announced that it has signed a deal for JPS Renewable Energy, a specialist solar and storage installation and distribution business, and its wholly owned subsidiary, Trust Solar Wholesale.
Trust Solar a standalone distribution and procurement business based in Maidstone.
The acquisition is on a debt-free, cash-free, basis for an initial consideration of £7m with further deferred consideration of up to £6.75 million, payable in cash over a two-year period.
JPS Group was founded in 2011 and includes a solar and storage installer and its wholly owned subsidiary Trust – a standalone distribution and procurement business whose customers include JPS..
For the financial year ended 30 April 2023, JPS Group reported revenue of £12.2m and profit before tax of £600,000.
For the financial year ending 30 April 2024, the JPS Group is on track to deliver revenue of £19.6m and profit before tax of £1.3m.
Good Energy says the acquisition will strengthen its service offering and accelerates the company’s energy services growth strategy in targeting higher margin, growth markets with lower working capital requirements.
Good Energy says it has continued to trade in line with the board’s expectations following its last update to the market in November.
Chief executive Nigel Pocklington said: “The acquisition of the JPS Group is an exciting next step in Good Energy’s growth strategy and further solidifies our position as the UK’s go-to solar specialist.
“Solar is experiencing a boom in the UK and its role in decarbonising our energy system is absolutely crucial. Installations are back at the peak we saw during the introduction of the Feed-in-Tariff – another period in which Good Energy was a key player, leading to our position as the largest voluntary administrator of the scheme today with over 180,000 solar generator customers.
“The solar installation market was worth £1.9 billion in 2023 with installations growing 38 per cent. on already strong growth in 2022. This is pronounced in the South East, which is the region with the fastest rate of domestic installations in the country.
“The JPS Group has carved a position as a leading installer across the region, serving as the solar specialist in the South East of the UK for larger homes and properties with more complex requirements. It is growing at a significant rate to help supply a specific market that is demanding premium clean energy products and services, which Good Energy is well positioned to provide as a premium, trusted and truly green energy supplier.
“Having integrated our previous acquisitions we are already marketing solar, storage and heat pumps alongside supply as everything you need for a greener home or business. Integrating JPS Group under the Good Energy brand will help to grow and consolidate Good Energy’s market share, affirm us as solar and storage experts, while also providing the opportunity for Good Energy to introduce its wider product suite to a new customer base.”