Global energy firm Centrica has purchased business energy management, combined heat & power and district heating firm ENER-G Cogen for £145 million.
Centrica confirmed the deal in a statement to the market this afternoon and said that Salford-headquartered ENER-G would form part of the group’s new international distributed energy and power business.
“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,” Iain Conn, chief executive at Centrica, said.
ENER-G has traditionally operated in the UK and has a commercial and industrial CHP portfolio of around 500MW, however Centrica added that this portfolio stood to grow further.
Centrica said it expected ENER-G to immediately contribute to the firm’s cash flow and earnings.
Alan Barlow, managing director at ENER-G, said the firm was “very excited” to become part of Centrica’s distributed energy 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,” he said.
The deal comes less than a month after Centrica paid £170 million for Neas Energy, which offers energy management and revenue optimisation for decentralised energy assets such as solar and wind farms.