Energy Assets Group acquires Blyth Utilities

Energy Assets GroupEnergy Assets Group plc, a provider of I&C gas metering services, utility infrastructure services and electricity metering and data services, has acquired Blyth Utilities Limited.

The transaction consideration comprises an initial cash payment of £1.5m, 200,784 shares in Energy Assets Group plc with a market value of £1m, which are subject to the sellers of Blyth remaining with the Group during a restrictive period of two years, and a three year earn-out consideration of up to £2.5m contingent on the future performance of Blyth and which will be settled evenly between cash and Energy Assets Group plc shares.  Cash consideration will be funded from a combination of cash reserves and existing loan facilities.  

blyth-logoIn the twelve months to 31 March 2015, Blyth reported an operating profit of £0.4m on a turnover of £7.2m.  This represented a circa 46% increase in profitability over the previous year.

Blyth, founded in 2003, has team of around 80 qualified and professional employees. The company is a Multi-Utility Infrastructure Provider involved in the design and construction of utility networks and infrastructure direct to commercial and residential developers throughout Scotland and the North of England and, along with Energy Assets, is accredited under the Gas Industry Registration Scheme (GIRS).  Blyth is also fully accredited under the National Electric Registration Scheme (NERS) and Water Industry Registration Scheme (WIRS).  

Phil Bellamy-Lee, Chief Executive of Energy Assets, commented: “The acquisition will allow us to expand our services to become a fully accredited multi-utility infrastructure provider in the commercial area and, following on from the recent government announcement that investment in the housing sector will double to support home ownership and a pledge to deliver additional new homes across the UK by 2020, will also enable us to extend our infrastructure offering to businesses within the UK house building sector at a very exciting time. 

Energy Assets recognises the importance of high quality, responsive and competitive provision of utility infrastructure and, as such, we are excited to be able to offer Blyth the support of the wider Group to realise the potential for growth within both businesses as a result of this acquisition.” 

UK, Scotland, Livingston & Clackmannanshire

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Costain acquires Rhead Group

Costain has acquired Rhead Group, a professional services consultancy with a focus on programme and commercial management.

Rhead Group, established in 1985 and operating with over 550 people, provides a range of solutions for the lifecycle of infrastructure, construction and asset management programmes, primarily in the UK, for a number of blue-chip customers including National Grid, Wales & West Utilities and BAE Systems. Rhead Group’s senior management team, including Nigel Curry, Rhead Group CEO, will remain with the business.

Costain’s strategy is to focus on major customers spending billions of pounds addressing national needs in energy, water and transportation. Those customers are consolidating their supply chains and are seeking an increasingly integrated service offering from their Tier 1 service providers through larger, longer-term collaborative contracts. Rhead Group will further enhance Costain’s programme management and advisory capability across all the Group’s operations as part of that integrated service offering.

Rhead Group has been acquired for a total cash consideration of £36 million on a debt free / cash free and normalised working capital basis and the consideration has been funded from Costain’s existing cash and debt facilities. £26 million of the cash consideration is payable to funds managed by Inflexion Private Equity Partners LLP and £10 million to the senior management team, which includes an element of deferred consideration of £3 million payable in two equal tranches on 17 August 2016 and 17 August 2017.

In the year ended 31 July 2014, Rhead Group generated revenues of £63.5 million and EBITDA of £5.2 million (before exceptional administrative expenses of £0.7 million).

For the year ended 31 July 2014 (the latest set of audited accounts) the Rhead Group reported operating profit (pre exceptional administrative expenses of £0.7 million and amortisation of goodwill of £2.7 million) of £4.6 million and a loss before tax of £1.2 million including interest on loan notes under its former capital structure. The Rhead Group has gross assets of £40.1 million as at 31 July 2014.

Rhead Group will be fully integrated into Costain in the current financial year and the acquisition is expected to be earnings enhancing from 2016.

Rhead Group will join Costain’s Power sector and report into the Natural Resources division.

Andrew Wyllie CBE, Chief Executive of Costain, commented:

“We are delighted to announce the acquisition of Rhead Group which has a well-established reputation for its collaborative approach, focus on innovation and service delivery excellence.

This transaction accelerates the development of Costain and further broadens our range of capabilities to meet the requirements of major blue chip customers, providing greater ability to deliver integrated solutions across the full lifecycle of a project.”

UK, Coventry

Kier Group to acquire Mouchel for £265M

kier-logoKier, the FTSE 250 property, residential, construction and services group, has announced that it has entered a conditional agreement to buy French repairs and maintenance business Mouchel.

Mouchel provides advisory, design, project delivery and managed services to the highways and transportation, local government, property, emergency services, health, education and utilities markets in the United Kingdom, the Middle East and Australia.

Kier has agreed to acquire Mouchel for £265 million in cash, to be financed by a £340 million fully underwritten rights issue.

Mouchel reported group revenue (including share of JVs) of £616.6 million and underlying operating profit of £27.7 million for the year ended 30 September 2014. Revenues for the three months ended 31 December 2014 increased by 38 per cent. compared to the same period in the previous year. The Acquisition is anticipated to deliver pre-tax cost synergies of approximately £10 million in the financial year ending 30 June 2017, with integration costs of the Acquisition expected to be approximately £17 million.

The Acquisition creates an Enlarged Group with a pro forma combined order book of £9.3 billion (as at 31 March 2015), comprising Kier’s order book of £6.5 billion and Mouchel’s order book of £2.8 billion.

Haydn Mursell, Chief Executive of Kier, said: “Over the last three years, Mouchel has been transformed into a strong business with market leading positions. The combination of Kier and Mouchel, particularly in the provision of UK highways maintenance services, creates a leader in a growing marketplace. The Acquisition is consistent with and accelerates the delivery of our Vision 2020 strategy and will provide compelling value to shareholders.”

UK, Bedfordshire

Two Fusion Deals in Two Days: The sale of energyTEAM and ENER-G Procurement

Fusion only - logoFusion Corporate Partners are pleased to announce the completion of the sale of two energy management services companies (and the third Fusion completion in the last month).

energyTEAM Limited and ENER-G Procurement Limited

Fusion Corporate Partners acted as corporate advisor for the vendors of both companies. The Fusion team was led by Paul Kelly, director at Fusion.

ET LogoenergyTEAM, a privately owned company based in Burgess Hill, West Sussex, has been running for nearly 40 years. Led by joint managing directors Chris Best and Brian Rickerby, energyTEAM has over 800 UK clients including public and private sector organisations. The company provides an integrated and fully managed energy management service comprising energy procurement and energy services. energyTEAM employs 60 staff. The deal was completed on Thursday 9th April 2015.

ener-gENER-G Procurement, owned by Salford-headquartered international renewable and sustainable energy specialist ENER-G Group, is based in Studley, Warwickshire. ENER-G Procurement was formed through the merger of the energy procurement arm of CMR Consultants and Utility Auditing Limited. Both companies were acquired by ENER-G Holdings plc in 2006 and 2007 respectively. ENER-G Procurement’s clients range from single energy-intensive sites, to large multi-site groups. ENER-G Procurement employs 52 staff. The deal was completed on Friday 10th April 2015.

Both companies were sold to Warrington based procurement services firm Inprova Group. The deals have been funded through a debt facility from Barclays. Investment from private equity house LDC is fuelling Inprova’s growth plans, which consist of a UK and international acquisition strategy focused on technology and category expertise that will complement the existing business. The terms of the deals are not being disclosed.

“It is highly unusual to sell two companies to the same acquirer at almost the same time. Both deals attracted multiple offers from prospective acquirers in two separate competitive processes. However, both vendors selected Inprova Group as their preferred choice,” said Kelly. “Neither vendor knew who the other was and, beside the normal complications of any sale process, the Fusion team also had to ensure confidentiality was maintained at all times. I am proud of the way the team managed these processes and I am delighted at the successful outcomes for both of our clients”.

Inprova Group is based at Olympic Park, in Birchwood, Warrington and has been set up by the founders of purchasing firm CEL Procurement, which has been providing procurement services since 1987, and was rebranded as Inprova in preparation for the group’s ambitious growth strategy. The company launched with Bob Holt as its chairman. Mr Holt drove the expansion and stock market flotation of property repairs giant Mears Group.

“Purchasing these two energy brokers ties in with Inprova’s wider strategy of building scale and capability across new procurement markets.” Commented Inprova group chief executive Paul Kennedy. For many of our customers, utility spend is becoming an increasingly complex and volatile area of spend and as such, they require a greater level of support and guidance in this spend category. The integration of these two businesses into the Inprova Group will enable us to negotiate better energy prices as we’ll take a far larger aggregation of spend to market. It is also likely that there’ll be opportunities for us to deliver wider procurement related services into the enlarged customer base.”

“Inprova Group will be turning over in excess of £12m per year following these two acquisitions.” Kennedy added: “My aim is to at least double this figure over the next two to three years. We’ll do this through our strong customer base in existing markets, which offers significant growth opportunities and also by continuing our ambitious UK and international expansion strategy.”

The Fusion Team has completed over 80 UK and cross border Business Support Services, Energy & Environmental Services, Media, Business Information & Technology, Exhibitions & Conferences, TV Broadcast & Production, Healthcare and Online Commerce transactions. Fusion specialises in the sale of middle-market companies with transactional values ranging from £5 million to £100 million. The sales of energyTEAM Limited and ENER-G Procurement Limited are our 7th and 8th sales of energy management companies.

UK, Warrington, Cheshire & Burgess Hill, East Sussex & Studley, Warwickshire

Other Fusion Deals:

Business Support Services and Energy & Environmental Services

Media & Business Information

Exhibitions & Conferences

Healthcare

Broadcast

RWE npower acquires Welsh energy management firm RUMM

RWE_npower endorsed_cmykRWE npower has acquired specialist energy management company RUMM. The Welsh tech firm, which was spun out of the University of South Wales, uses cloud-based data analytics to help businesses monitor and control their energy in real time. The terms of the deal were not disclosed.

RUMMAccording to RUMM’s website, the company has saved over £43 million for its customers since it was founded in 2005. npower Business Solutions, which is the second largest supplier of energy to British businesses, will roll out RUMM’s software to its biggest customers in Q2 2015.

Paul Massara, CEO of RWE npower, said: “npower Business Solutions is committed to helping the UK’s largest companies manage their energy needs so they can budget for the future. RUMM’s technology is truly innovative, giving businesses the tools they need to make significant savings on the bottom line.

“This deal represents an important investment in both our energy solutions business and the thriving South Wales tech community. With the right support and incentives, we are confident that Welsh start-ups, like RUMM, will continue to grow, exporting their expertise across the world.”

Developed as the result of work at the University of South Wales RUMM’s proprietary software, IBASS, captures and stores energy usage data every half-hour to identify potential inefficiencies on customers’ sites. The software provides the basis to enable significant energy reduction and has the capability to offer switch-off measures.

UK, Mynach, Wales

CBRE Group to acquire the Global Workplace Solutions Business of Johnson Controls

CBRECBRE Group is to acquire the Global WorkPlace Solutions (GWS) business of Johnson Controls, Inc. GWS is a provider of integrated facilities management solutions for major occupiers of commercial real estate and has significant operations around the world. The purchase price is $1.475 billion, payable in cash, or $1.3 billion net of the present value of estimated tax benefits, and with customary post-closing adjustments for working capital and other items. GWS will operate as part of CBRE’s Global Corporate Services business.

“The exceptionally talented GWS team will greatly enhance our service offering for occupiers around the world,” said Bob Sulentic, president and chief executive officer of CBRE. “With GWS, we further our ability to create advantages for occupier clients by aligning every aspect of how they lease, own, use and operate real estate to enhance their competitive position.”

JOHNSON CONTROLS LOGOGWS, which has approximately 16,000 employees worldwide, generated approximately $3.4 billion of revenue for the 12 months ended December 31, 2014. Upon closing, John Murphy, GWS’s president, will join CBRE as global chief operating officer, GCS.

Together, CBRE and GWS will manage nearly 5 billion sq. ft. of real estate and corporate facilities globally, including 2.3 billion sq. ft. in the Americas, 1.2 billion sq. ft. in Europe, the Middle East & Africa and 1.4 billion sq. ft. in Asia Pacific.

CBRE anticipates that GWS will be materially accretive to its adjusted earnings per share in 2016. It expects to fund the acquisition through a combination of cash on hand and proceeds from the incurrence of debt. The transaction is expected to close in the late third quarter or early fourth quarter of 2015 and is subject to customary regulatory approvals. Simpson Thacher & Bartlett LLP acted as CBRE’s legal advisor.

USA, Los Angeles, CA & Milwaukee, WI

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Energy Assets Group acquires SA Gas Engineers

Energy Assets GroupEnergy Assets Group plc, a provider of I&C gas metering services in the UK, has acquired SA Gas Engineers Limited, an accredited meter asset manager and a UK expert in complex I&C gas engineering and specialist siteworks projects. 

sa_gas_logoEstablished in 1992 and based in Nottingham, SA Gas provides services both upstream and downstream of the customer’s meter. The company has a wealth of experience and expertise in all types of I&C gas related engineering projects.  In the year to 31 July 2014 SA Gas generated turnover of £2.9m.

The transaction consideration comprises an initial cash payment of £3.4m, 222,108 shares in Energy Assets Group plc, with a market value of £1m, which are subject to the sellers of SA Gas remaining with the Group during a restrictive period of two years, an earnout consideration of up to £0.5m contingent on the future profitability of SA Gas and an amount for the completion cash balance of SA Gas which will be determined on the basis of completion accounts.  The cash consideration is also subject to post-completion adjustment by reference to the actual completion working capital of SA Gas.  Cash consideration will be funded from a combination of cash reserves and existing loan facilities.  

Phil Bellamy-Lee, Chief Executive of Energy Assets, commented: “Energy Assets has built a strong relationship with SA Gas over a number of years, working together on several major projects, and I am delighted to now welcome them fully into the Group in an acquisition that represents another significant step in our growth strategy.  The strong SA Gas brand and reputation, along with the wealth of acquired expertise, will complement our existing business resulting in further improvements to the service offering and value delivered to our customers.”

UK, Livingston, West Lothian & Nottingham, Nottinghamshire

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