Contractor set to become largest player in local authority energy sector
Carillion is set to buy the UK鈥檚 largest national supplier of heating and renewable energy for housing and local authority buildings.
Carillion鈥檚 Weekly Share Price
The contractor鈥檚 recommended offer for energy specialist Eaga values the firm at 拢306m.
The deal gives Carillion a dominant position in the local authority and housing association energy sector.
Eaga turned over 拢762m last year and employs about 4,000 staff. The energy specialist runs large national projects including the government鈥檚 Warm Front home insulation scheme and has seen significant growth in fitting solar panels to local authority buildings and homes.
Carillion said the deal secured the firm鈥檚 position in the UK support services market, creating a business with a combined support services revenue of nearly 拢3bn.
Philip Rogerson, chairman of Carillion, said: 鈥漈he acquisition brings together two complementary companies, enhancing Carillion鈥檚 position as one of the UK鈥檚 leading support services companies.
鈥淐arillion has identified the low carbon market as a strategic area of growth and the acquisition of Eaga will create a scalable platform to build the UK鈥檚 largest independent energy services provider.
鈥淭his will also extend Carillion鈥檚 capability to provide integrated support services solutions for its existing customers, for whom energy services are an increasingly important requirement.鈥�
Charles Berry, chairman of Eaga, said: 鈥漈he offer received from Carillion has come at an interesting time in Eaga鈥檚 development, as our markets are changing rapidly.
鈥淲hile there are exciting future prospects, we believe these are potentially better accessed as part of a larger group.鈥�
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