21st Apr 2016 06:25
LONDON (Alliance News) - Centrica PLC on Thursday said it has agreed to acquire Neas Energy AS for around GBP170.0 million in a deal that will further the UK energy company's strategy to expand its services in Europe.
Neas Energy is a provider of of energy management and revenue optimisation services and is also an asset management and energy trading company that is headquartered in Aalborg in Denmark, with other offices in Dusseldorf, London, Hamburg and Stockholm.
"The acquisition is in line with Centrica's strategy to expand its route to market services in Europe, and to continue to utilise and build its knowledge of European energy markets in order to benefit from trading and optimisation activity," it said.
Centrica will pay DKK1.60 billion in cash for the company, which roughly equates to GBP170.0 million, plus adjustments for cash and net working capital.
"Neas has a business model that is complementary to Centrica's current Energy Marketing & Trading activities, providing expertise in short-term power trading and asset management in North West Europe, with Centrica's existing expertise focused on longer-term gas and power trading in the UK and Europe," said Centrica.
"The transaction also adds enhanced analytics, IT and trading capabilities in Continental Europe. Neas provides customers with route to market and short-term trading optimisation services in six European countries," the company added.
Centrica said Neas's customers own around 2,500 individual decentralised assets, which includes a number of renewable energy assets including solar plants, windfarms and combined heat and power plants that have a combined capacity of around 8,600.0 megawatts.
Neas reported revenue of around GBP2.20 billion and earnings before interest, tax, depreciation and amortisation of GBP21.0 million in 2015.
By Joshua Warner; [email protected]; @JoshAlliance
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