Spice buys again
UTILITY support services group Spice has made its second acquisition in a week.
The fast-growing Leeds group has bought Saturn Energy for up to £8.25m.
The deal is for £3.5m in cash and another £4.75m depending on future results up to 2009.
The Liverpool-based company is a commercial energy broker focused on the small and medium enterprise (SME) sector. It acts as an agent for SME's to procure gas and electricity from suppliers under medium and long term contracts and employs 11 people.
It had turnover of £1.4m in the 11 months to June 30 with operating profits of £800,000. Net assets were £100,000.
It was established in 1999 by its directors, Thomas McInerney, Michael McInerney and Roger Askew. Following the acquisition, Roger Askew will
remain as a director and Thomas and Michael McInerney will be retained on a consultancy basis.
Saturn will be part of Spice's energy management division which includes the Inenco business.
Simon Rigby, chief executive of Spice, said: “'The acquisition of Saturn enables us to extend the range of our energy brokerage services into the SME sector where its expertise is valued both by customers and suppliers. We intend that Saturn will continue to operate as it always has done but that its services will be enhanced by working alongside Inenco. The market for the procurement of energy in the SME sector has traditionally been fragmented and the acquisition of Saturn will provide us with a strong and proven model to enable us to build our presence in this sector.”
Spice was founded in April 1996 when Mr Rigby bought the facilities business of Yorkshire Electricity for a nominal sum. It then had 12 employees and now has several thousand staff.
