16th May 2016 15:11
LONDON (Alliance News) - British Gas-owner Centrica PLC said Monday it has agreed to buy ENER-G Cogen International Ltd from ENER-G Holdings PLC for GBP145 million.
ENER-G Cogen is a supplier and operator of combined heat and power products. It has around 1,400 units totalling over 500 megawatts under contract with a growing customer book, Centrica said.
ENER-G Cogen operates predominantly in the UK, but also has operations in the US, Hungary, Italy, the Netherlands and Romania. It also has sales partnerships with local entities in Australia, Ireland, Japan, Canada and Turkey.
Centrica said ti expects the acquisition to immediately contribute to its cash flow and earnings. It will be used to form part of Centrica's new international Distributed Energy & 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," said Chief Executive Iain Conn in a statement.
Shares in Centrica were down 0.4% at 201.55 pence Monday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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