Energy consultancy EIC snapped up by northern rival

ENERGY cost management consultancy EIC is to be taken over by North East-based rival Utilitywise.

The deal creates one of the largest energy procurement and energy consultancy firms in the UK.

Redditch-based EIC (Energy Information Centre) is to be bought for a total consideration of £15.5m. This will be made up of £10.5m in cash and £5m in new Utilitywise shares.

In addition, Utilitywise will repay EIC’s existing mortgage debt of £1.94m.

Utilitywise says the transaction is expected to be earnings enhancing in the first full year post acquisition.

The North East firms says the acquisition provides it  with a key ‘flexible buying’ capability and suggests EIC’s strength in the industrial and commercial market complements Utilitywise’s position in the SME market.

Geoff Thompson, CEO of Utilitywise, said: “The acquisition of EIC creates an energy procurement and consultancy firm of real scale and adds further products and expertise to our already impressive portfolio.

“EIC’s strength lies predominantly in the larger, industrial and commercial segment of the market, an area which we had identified as a strategic area of growth, which combined with our market leading position in the SME segment gives us a strong foothold across the market and an excellent platform for growth.

“Utilising our outstanding proprietary IT and business analysis systems and our combined product range, we believe that we can identify and target a much greater portion of the I&C market, maximise the strength of the EIC brand and, thereby, the return on this investment for our shareholders.”

Law firm Eversheds advised Utilitywise on the deal. Clive Owen & Co gave financial advice and transaction support services on the acquisition.