LONDON (Alliance News) - Gas metering services provider Energy Assets Group PLC on Thursday said it has struck a deal to acquire Blyth Utilities Ltd in cash and shares.
Energy Assets will pay GBP1.5 million in cash upfront, along with a further GBP1.0 million in shares. To cover the latter, it will issue 200,784 shares, giving the shares a price of around 498.00 pence.
The company will then pay another GBP2.5 million dependent on Blyth meeting performance targets over three years, which will be settled equally in cash and shares.
Blythe is a multi-utility infrastructure provider involved in the design and construction of utility networks for commercial and residential developers in Scotland and the North of England.
The deal will allow Energy Assets to offer a complete multi-utility infrastructure service across gas, electricity and water.
"The acquisition will allow us to expand our services to become a fully accredited multi-utility infrastructure provider in the commercial area and, following on from the recent government announcement that investment in the housing sector will double to support home ownership and a pledge to deliver additional new homes across the UK by 2020, will also enable us to extend our infrastructure offering to businesses within the UK house building sector at a very exciting time," said Chief Executive Phil Bellamy-Lee.
"Energy Assets recognises the importance of high-quality, responsive and competitive provision of utility infrastructure and, as such, we are excited to be able to offer Blyth the support of the wider group to realise the potential for growth within both businesses as a result of this acquisition," he added.
Energy Assets shares were up 0.4% to 502.00p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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