Flogas to acquire eEnergy’s energy management division

January 26, 2024 — Fusion DigiNet

Flogas Britain Limited (Flogas) has agreed to acquire eEnergy Group‘s energy management division for an initial consideration of £29.1 million, plus an up to £8 to £10 million earn-out contingent on trading performance for the period to 30 September 2025. The initial cash consideration will be paid on completion following approval of the transaction by eEnergy shareholders at a General Meeting to be held on or about 7 February 2024. Flogas is part of DCC Energy and a subsidiary of DCC plc.

Deal details

eEnergy Group’s energy management division, for the 12-month period to 30 June 2023, reported revenues of £13.6 million (up 17% on FY 2022) and adjusted EBITDA of £4.4 million (up 20% on FY 2022).

The initial total consideration of £29.1 million, will comprise of £25 million cash with the balance of £4.1 million to be used to repay amounts due from the eEnergy Group to the energy management division

The initial total consideration equates to an enterprise value of £30 million after adjustments reflecting net debt and normalised working capital

eEnergy Group reports that the the earn-out consideration will be in the range of £8 million to £10 million. To achieve this, the the Energy Management Division will have to show strong growth in line with its business plan, linked to net cash generated from completion to 30 September 2025 ,

The net proceeds will be used to pay down the Group’s debt facilities of £8.1 million in full, to reinvest into the energy services division and for general working capital purposes

The initial cash consideration of £25 million delivers an immediate return on the £23.4 million invested into the Energy Management Division since the initial acquisition of Beond Group Limited in December 2020.

eEnergy Group acquires Beond Group – December 2020 – story here

The total consideration for the acquisition of Beond in December 2020 (which included £0.7 million of surplus cash in the business) comprised approximately £2.4 million in cash and the issue of 64,948,456 consideration shares.

Going forward, eEnergy will focus on accelerating growth in the Energy Services Division, supported by re-investment of the majority of the cash received, following debt paydown. During the same 12-month period to 30 June 2023, the Energy Services Division reported revenues of £19.5 million and Adjusted EBITDA of £2.3 million, up 87% and 131% respectively on FY 2022, demonstrating significant and growing demand.

Ivan Trevor, Managing Director, Flogas Britain comments: “Flogas are delighted to welcome the Energy Management Division of eEnergy Group plc to DCC Energy. Together with Certas and the recent acquisitions of Protech, Centreco and DTGen, this acquisition further expands our capability in energy management services, providing a comprehensive range of products and services to partner with our customers on their journey to Net Zero and supporting our ambition to halve the carbon emissions of the energy we supply by 2030. “

UK, Leicestershire & London

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eEnergy Group plc to acquire Beond Group

December 11, 2020 — Fusion DigiNet

eEnergy Group plc is to acquire Beond Group Limited, a UK renewable energy consulting and procurement business.

Beond, based in West London, helps its clients to transition to the lowest cost zero carbon energy available in the market. Working with small businesses to large corporates and public sector organisations it runs competitive reverse auctions through its proprietary technology. This ensures that its clients have access to the lowest prices across the market while achieving their net zero energy ambitions. It offers a Risk Managed service for clients that wish to have access to the energy wholesale markets and implements hedging strategies to help protect against rising market prices.

The total consideration for the Acquisition (which includes £0.7 million of surplus cash in the business) comprises approximately £2.4 million in cash and the issue of 64,948,456 consideration shares.

For the year to 31 December 2019, Beond’s revenue grew 10.5% to £3.3 million, with EBITDA of approximately £0.5 million at a margin of 14.1%;

eEnergy Group expects Beond to generate:

  • revenue growth at an annual average rate of 22% from the year to 31 December 2020 to 31 December 2022
  • base case EBITDA for the year to 31 December 2021 of approximately £0.8 million;
  • EBITDA margin improvement from 14% for the year to 31 December 2019 to 28% for the year to 31 December 2022;

The cash component will be funded through a placing of a minimum of £3.0 million to new and existing institutional and other investors, at a Placing Price of 10.0 pence per placing share.

CEO of Beond, Derek Myers, is expected to join the Board of eEnergy on completion of the acquisition.

An integration team, led by new (non-Board) Chief Operating Officer, Robert Van Leeuwen, is expected to work closely with the Beond management team and oversee initiatives to accelerate growth.

Harvey Sinclair, CEO of eEnergy, commented: 

“The acquisition of Beond is the next step in our journey to delivering a sustainable future for our clients. Beond’s, a climate action business, leverages award-winning technology to secure the best zero carbon energy supply for their customers. With a focus on energy management, their technology will add significant value to eEnergy’s existing client base by helping to make ‘Net Zero’ a reality. Beond’s platform is one of a very small number of specialised reverse auction technologies available to customers, securing the best priced zero carbon energy through a highly competitive auction process. 

eEnergy, listed on AIM, is the parent company of eLight and RSL, which help businesses and schools switch to energy-efficient LED.

UK, London

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