Acquisition of Empower Energy
28/10/2024 07:10
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RNS Number : 7717J Good Energy Group PLC 28 October 2024
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Good Energy Group PLC
("Good Energy" or "the Group")
Acquisition of Empower Energy for up to £8.0 million
Good Energy Group PLC (AIM: GOOD), the 100% renewable electricity supplier and
energy services provider, is delighted to announce that it has entered into a
conditional binding agreement to acquire Empower Energy Limited ("Empower"), a
commercial focused solar installation company (the "Acquisition") with
nationwide installation capabilities. The Board expects the Acquisition,
coupled with the acquisition of Amelio Enterprises Limited ("Amelio") on 4
October 2024, to be substantially earnings enhancing in FY25 and beyond.
This is the fifth acquisition Good Energy has made in the past two years, and
the fourth in solar installation services. The combination of Empower, the
recently-acquired Lincolnshire based Amelio, and Good Energy's existing solar
installation capability across the south, represent a major step towards
completing Good Energy's strategic objectives in the solar installation
market.
The Acquisition has enabled Good Energy to continue to scale its commercial
installation capacity. Empower, alongside Amelio, materially accelerate the
Group's progress in developing its services proposition to become the dominant
contributor to profits and will make a material contribution to the Group's
earnings from 2025 onwards.
Transaction highlights:
· Good Energy will acquire 100% of the issued share capital of Empower
on a debt-free, cash-free, basis for an initial consideration of £7.0
million. The initial consideration will be satisfied by a payment of £6.25
million in cash upon completion, and through the allotment of 254,237 new
ordinary shares of 5 pence each in Good Energy at a price of 295 pence per
share (the "Consideration Shares"). The Consideration Shares will be retained
by the vendors and will be subject to a twelve-month lock-up period and a
further 12 month orderly marketing period.
· Further deferred consideration of £1.0 million is payable in cash in
January 2026, subject to certain retention arrangements relating to Ryan
McShea, Founder and Managing Director of Empower.
· For the financial year ended 31 August 2024 Empower reports unaudited
revenue of £10.1 million and profit before tax of £1.8 million.
· Ryan McShea will join Good Energy as part of the Acquisition to
support the growth and integration of Empower into the Group.
· Able to service clients nationwide, but with a particular focus on
its core territory of Hampshire and the South of England, Empower will
significantly increase the commercial business footprint of Good Energy's
installation capability.
· The Acquisition will be funded from Good Energy's existing resources
whilst retaining a healthy cash balance to support the continued organic
growth of the Group.
An application was made to the London Stock Exchange plc for the admission of
the Consideration Shares to trading on AIM ("Admission"). Admission is
expected to take place on 29 October 2024. Following Admission, the Company
will have 18,506,399 Ordinary Shares in issue. There are no shares held in
treasury. Therefore, the Company hereby confirms that the total number of
voting rights in the Company will, following Admission, be 18,506,399. This
figure may be used by shareholders as the denominator for the calculations by
which they will determine if they are required to notify their interest in, or
a change to their interest in, the Company under the FCA's Disclosure Guidance
and Transparency Rules.
Nigel Pocklington, CEO of Good Energy, commented:
"Businesses are increasingly recognising that the commercial rationale for
installing solar is strong, even before you consider the associated benefits
of carbon reduction. With energy costs remaining high, businesses and
organisations with rooftop real estate can achieve excellent returns on
investment.
"Good Energy is already providing high quality, consultative commercial solar
installation services to customers in the South, and through Empower joining
the Group we are stepping this up further. Offering commercial solar
installation backed by 15 years of experience nationwide, Empower accelerates
Good Energy's solar service offering.
"As the fourth solar acquisition Good Energy has made in 18 months and the
second in only weeks, we have rapidly scaled our service coverage and
capability. We will now be focussed on integrating these businesses under the
Good Energy brand, leveraging our increased operational scale and vertical
integration to provide a cohesive experience for commercial customers looking
to cut their energy bills and their carbon through installing solar."
Announcement authorised for release by Nigel Pocklington.
Enquiries
Good Energy Group PLC
Nigel Pocklington, Chief Executive Email: press@goodenergy.co.uk
Ian McKee, Head of Communications
SEC Newgate UK
Elisabeth Cowell / Molly Gretton Tel: +44 (0)7900 248213
Email: GoodEnergy@secnewgate.co.uk
Canaccord Genuity Limited (Nominated Adviser and Joint Broker)
Henry Fitzgerald-O'Connor / Harry Rees Tel: +44 (0) 20 7523 4617
Panmure Liberum Limited (Joint Broker)
Edward Mansfield / William King / Josh Moss Tel: +44 (0) 20 3100 2000
About Good Energy www.goodenergy.co.uk (http://www.goodenergy.co.uk/)
Good Energy is a supplier of 100% renewable power and an innovator in energy
services. It has long term power purchase agreements with a community of more
than 2,500 independent UK generators.
Since it was founded 25 years ago, the Company has been at the forefront of
the charge towards a cleaner, distributed energy system. Its mission is to
power a cleaner, greener world and make it simple to generate, share, store,
use and travel by clean power. Its ambition is to support one million homes
and businesses to cut carbon from their energy and transport used by 2025.
Good Energy is recognised as a leader in this market, through its B Corp
accreditation, Which? Eco Provider status and Gold Standard Uswitch Green
Tariff accreditation for its standard tariff.
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