Centrica PLC
6 June 2005
Centrica acquires Dutch energy supplier
Centrica plc today announced that it has agreed to acquire Oxxio BV (Oxxio), a
Dutch energy supplier, for a price not exceeding €137 million (£93 million)
including an earn-out mechanism within the transaction based on future
performance of the company.
Oxxio supplies energy to residential and small business customers across the
Netherlands and currently has around 400,000 electricity and 140,000 gas
accounts, and, following full market liberalisation in July 2004, is now
acquiring around 20,000 energy accounts per month.
The company, which employs 95 full-time equivalent employees, operates a low
cost, technology based, business model which combines the internal management of
key elements, such as marketing and procurement, with the outsourcing of more
routine billing and sales activities.
The Benelux region is leading the way in terms of delivering deregulation in
Continental Europe and this acquisition gives Centrica a material position as
the fourth largest supplier in the Netherlands in terms of electricity accounts.
The acquisition provides Centrica with a growth platform and an opportunity to
develop a deeper understanding of the competitive and regulatory environment in
the deregulating Dutch market prior to the expected unbundling of the incumbents
by 2008.
For the year ended 31 December 2004 Oxxio reported revenues of €177 million
(£120 million), EBITDA of €7.2 million (£4.9 million) and EBITA of €6.9 million
(£4.7 million).
Sir Roy Gardner, Chief Executive of Centrica, said: 'Becoming a significant
player in the Netherlands marks another step in the development of Centrica's
European strategy, and is further evidence of our commitment to strengthen our
position on the Continent.
'Entering the Dutch market at this formative stage, when there is a commitment
from the Government to require incumbent energy companies to unbundle their
supply businesses, offers an opportunity to grow the Oxxio business whilst also
monitoring opportunities for further acquisitions in the Benelux region.'
Enquiries:
Centrica Media Relations 01753 494085
Centrica Investor Relations 01753 494900
Notes to Editors:
1. The Netherlands is the fourth largest gas market in Western Europe with
annual consumption of approximately 50BCM. The electricity market is relatively
small in European terms, with annual consumption of around 118TWh and maximum
net generation capacity of approximately 22GW.
2. The Dutch market has been fully opened to competition since July 2004 and
further legislation has recently been introduced which requires incumbent energy
companies to fully unbundle their supply and generation businesses from the
regulated networks by 1st January, 2008.
3. The transaction is expected to close around the end of June 2005. As is
normal practice, the final purchase price is subject to adjustment based on the
working capital in the company at completion.
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