Acquisition

RNS Number : 9021A

Scottish & Southern Energy PLC

16 October 2009

 



ACQUISITION OF ESBC STREET LIGHTING BUSINESS

Scottish and Southern Energy plc ("SSE") has entered into an agreement to acquire the assets of ESB Contracts Limited ("ESBC"), the street lighting business of Dublin-based ESB, for a total cash consideration of €6.4m. The acquisition is due to complete on 30 November 2009.

ESBC currently maintains around 300,000 street lights in the Republic of Ireland, and its assets include vehicles and stock.  Street lighting maintenance will, in due course, become the subject of competitive tendering by local authorities.

SSE and ESB will also enter into an agreement under which ESB will provide transitional services to ensure continuity of service. These relate to issues such as IT systems, property and vehicles. 

Following the acquisition, ESBC employees will have the option to transfer to the new company. A period of consultation with employees will take place over the coming weeks. 

SSE is the leading streetlighting contractor in Great Britain, covering over one million lighting columns, and employing over 800 people. It continues to invest in the latest advancements in streetlighting management systems, using the latest technologies which promote energy efficiency, reductions in carbon and remote monitoring. 

Under SSE's ownership, the business will be known as Airtricity Utility Solutions and will employ over 100 people, including people who currently work with ESBC.  SSE's Dublin-based subsidiary, Airtricity, already supplies electricity to over 100,000 customer accounts in the island of Ireland's Single Electricity Market. It also owns and operates 325 MW (megawatts) of wind farm capacity in the Republic of Ireland and 75MW in Northern Ireland.

Following this acquisition, SSE will employ around 400 people in the Republic of Ireland.

Ian Marchant, Chief Executive of SSE, said:

"It is just two years since we set out our goal to extend SSE's activities beyond the Great Britain market and into Ireland and the acquisition of this street lighting business adds to the step-by-step progress we have already made in electricity generation and energy supply.  The key task now is to make sure that the street lighting service we deliver to local authorities and the communities they serve continues to be of the highest possible standard." 

 

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