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.”