REG - SSE Plc - Acquisition of The Energy Solutions Group <Origin Href="QuoteRef">SSE.L</Origin>

SSEAnnouncement

07/09/2014 24:24

For best results when printing this announcement, please click on the link
below:

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20140731:nRSe7850Na


RNS Number : 7850N
SSE PLC
31 July 2014 
 
SSE plc 
 
ACQUISITION OF THE ENERGY SOLUTIONS GROUP 
 
SSE plc has completed the acquisition of The Energy Solutions Group Topco
Limited (ESG), a Manchester-based designer and provider of energy management
solutions, from Bridgepoint Development Capital, for an enterprise value and
total cash consideration of £66m with the potential for a further £6m if
agreed targets are achieved. 
 
ESG has traded for almost 20 years and employs around 340 people.  It works
with private and public sector customers to identify improvements in their
management of energy consumption; and to install, maintain and support
building management systems and solutions that support this.  ESG can
typically save its customers around 20% to 30% of their energy consumption. 
 
The acquisition of ESG complements and enhances SSE's services in competitive
markets for industrial and commercial customers.  As stated in SSE's financial
results statement in May, these services - including electrical and mechanical
contracting, lighting services, private energy networks and telecoms - are
being brought together in an 'Enterprise' division to meet the energy and
related needs of such customers in an enhanced and co-ordinated way. 
 
The existing management team at ESG will lead this business, which will
continue to trade as The Energy Solutions Group.   SSE believes that it will
benefit from the commitment of the ESG management team and other employees to
delivering effective energy management solutions for the benefit of customers
and the environment.  It is expected to earn annual operating profit of over
£10m within five years, in addition to the commercial synergies that it will
bring to SSE's Enterprise division. 
 
Jim McPhillimy, SSE's Managing Director, Enterprise, said: 
 
"Managing energy costs and environmental impact are big priorities for
businesses and other organisations.  As a responsible company focused on the
long term, we believe it is in SSE's interests to make the consumption of
energy more sustainable.  ESG is a leading provider of energy management
solutions and these will be offered to SSE's existing and potential new
customers as part of a significantly increased presence in the growing
business-to-business market for energy services. 
 
"This market will be increasingly important in the next few years, and SSE's
programme to dispose of assets and businesses that are not core to its future
plans is designed to enable the company to make a success of those
opportunities which are, such as energy services. The disposal programme is
well under way and we expect to report substantive progress in the autumn." 
 
ENDS 
 
This information is provided by RNS
The company news service from the London Stock Exchange