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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Energy Assets Group acquires BGlobal Metering Limited

Energy Assets GroupEnergy Assets Group plc, the provider of industrial and commercial gas metering services, has acquired BGlobal Metering Limited from Bglobal plc for a cash price of £2.3m which includes payment of £0.2m for the completion cash balance.  The acquisition is made on a debt free basis with a working capital adjustment mechanism in place post completion. Fusion DigiNet reported that BGlobal plc had decided to sell its metering business in November last year.

Based in Blackburn, BGM is a wholly owned subsidiary of Bglobal plc and provides advanced metering technology to the UK bglobalI&C electricity sector.  This includes the supply and installation of smart electricity meters, meter operator services (MOP), and the ongoing collection and aggregation of energy data (DCDA).  BGM is a fully accredited MOP and DCDA and provides MOP services to utility companies for circa 60,000 meter points and DCDA services for in excess of 90,000 meter points.

The Energy Assets directors say they are confident that, following integration into the Group, the BGM business will be earnings enhancing within 12 months of the acquisition date.  BGM had gross assets of £4.0m at 31 March 2013.  The business generated revenues of £7.4m, over half of which are recurring revenues, and incurred a loss before tax of £1.5m (after exceptional asset impairment and intra-group management charges of £0.7m) for the year ended 31 March 2013.

Phil Bellamy-Lee, Chief Executive of Energy Assets, commented, “I am delighted to announce the acquisition of BGlobal Metering Limited from Bglobal plc.  This transaction enables Energy Assets to expand its presence into the electricity sector and is a significant step in the delivery of the Group’s strategy to offer services across a multi-utility platform.  With continued focus on delivering value added services to the expanded utility and commercial client base, this acquisition also provides the Group with further opportunities for growth as well as enhancing our market position and increasing shareholder value in the near term.”

UK, Livingston, West Lothian & Blackburn, Lancashire

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