Acquisition

Acquisition

Centrica plc

Centrica acquires CHP business to enhance distributed energy offering

Centrica plc has acquired ENER-G Cogen International Limited (“ENER-G Cogen”), an established supplier and operator of combined heat and power (CHP) solutions, from ENER-G Holdings PLC for £145 million.

ENER-G Cogen has over 30 years’ experience and a strong track record in delivering end-to-end CHP solutions for industrial and commercial customers, and has around 1,400 units totalling over 500MW under contract with a growing customer book. The business operates predominantly in the UK but also has operations in the United States, Hungary, Italy, the Netherlands and Romania and has a strong, diverse customer base across private and public sectors. It also participates in Australia, Ireland, Japan, Canada and Turkey through sales partnerships with local entities. The acquisition of ENER-G Cogen will immediately contribute to cash flow and earnings.

The business will form part of Centrica’s new international Distributed Energy & Power business and complements Centrica’s existing capability in installing and managing distributed systems for customers in both the UK and US.

Iain Conn, Chief Executive of Centrica said:

“We are building an international Distributed Energy & Power business, as demand for CHP products and other distributed energy technologies grow. This acquisition strengthens our delivery capability, both in the UK and internationally.

The ENER-G Cogen team has an impressive track record in delivering both off-the-shelf and bespoke solutions for a variety of customers, from initial design through to installation, operation and maintenance. This is an important step forward in accelerating our customer-facing strategy to deliver what our business customers need.”

Alan Barlow, Managing Director of ENER-G Cogen said:

“The team at ENER-G Cogen International are very excited to become an integral part of Centrica's Distributed Energy & Power business. We believe our combined technology offering, sector knowledge and ability to deliver integrated customer focused energy solutions will leave us well placed to grow in the international distributed energy sector.”

ENDS

Enquiries:

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Notes to editors:

1. The final cash consideration may be subject to small adjustments for working capital and other items.

2. This is the second of two prioritised and attractive customer-facing acquisitions announced by Centrica in recent weeks, for a combined consideration of approximately £350 million. Centrica announced it has agreed to acquire Neas Energy, one of Europe’s leading providers of energy management and revenue optimisation services for decentralised third-party owned assets, on 21 April 2016.

About ENER-G Cogen International

• Headquartered in Salford, Greater Manchester, ENER-G Cogen International Limited was founded in 1984.
• The company has approximately 350 employees worldwide and delivers solutions for a variety of customers including hospitals and universities through to supermarkets and leisure centres.
• Their focus is on the design, installation, operation and maintenance of gas-fuelled combined heat and power systems, sited on industrial and commercial premises. Their core product catalogue is made up of a proprietary range of standard CHP units from 25kW to 530kW. The business also offers systems from 0.5MW to 2.5MW and above, designed on a bespoke basis.
• CHP is an efficient solution for customers who derive cost and carbon benefits from generating heat and power on-site rather than relying on a gas boiler for heat and the grid for electricity.

About Centrica Distributed Energy & Power (DE&P)

• Centrica’s DE&P business brings together the shared expertise of Centrica’s Power and Energy Construction Services teams in the UK, and members of the US Direct Energy team to deliver distributed energy solutions for businesses and other large energy users. We expect to invest £700 million into the new business by 2020.
• We already have over 1,000 customers across 3,700 sites in the UK and US.
• In November 2015, we added a further 164 customers to our portfolio through the acquisition of Panoramic Power in the US, a global pioneer in energy management that has developed and delivered patented, wireless sensor technology across 750 sites in 30 countries.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160516006125/en/