Energy Assets Group plc has acquired Blyth Utilities Limited
Energy Assets Group plc, the largest independent provider of industrial and commercial (I&C) gas metering services in the UK and a major provider of utility infrastructure services and electricity metering and data services, is pleased to announce that it has acquired the entire issued share capital of Blyth Utilities Limited (Blyth).
Blyth 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).
This acquisition will enable Energy Assets to provide a complete multi-utility infrastructure offering across gas, electricity and water, in accordance with the Group's strategy, whilst also creating growth opportunities to businesses within the UK house building sector. The Group will also examine the opportunity arising from this acquisition to grow a pipeline asset portfolio, utilising its existing Independent Gas Transporter (IGT) licence.
Since incorporation in 2003, and now with a team of circa 80 highly qualified and professional employees, Blyth has a proven track record and has built a strong reputation, based on quality, expertise and delivery, as a key multi-utility infrastructure provider in the commercial and residential construction sectors within Scotland and the North of England. Once integrated into the Group, it is the intention that the Blyth business model will be expanded across the UK using the existing Energy Assets footprint.
In 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.
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 earnout 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.
The acquisition is in line with Energy Assets' established strategy of making selective acquisitions which add value to the Group. The Energy Assets directors are confident that, following integration, the Blyth business will provide enhanced earnings for the Group from the beginning of the new financial year on 1 April 2016.
Phil Bellamy-Lee, Chief Executive of Energy Assets, commented:
"I am delighted to welcome Blyth into the Energy Assets Group in an acquisition that represents another step in our continuing growth strategy.
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."
Colin Lynch, Joint Managing Director of Blyth, said:
"Blyth has been delivering high quality infrastructure solutions to our customers for many years and has gained a strong reputation within the industry.
We are delighted to now have the opportunity to grow the business further by being part of a wider Group and are confident that the support that Energy Assets can offer will allow us to achieve our long term growth strategy.
We believe that this opportunity offers an exciting future for both Blyth and Energy Assets."