Acquisition of CorEnergy Limited
08/12/2021 06:59
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RNS Number : 9061U Sureserve Group PLC 08 December 2021
8 December 2021
Sureserve Group plc
("Sureserve" or the "Group")
Acquisition of CorEnergy Limited
Further expands Group's capabilities in sustainable energy solutions
Sureserve (AIM: SUR), the compliance and energy services Group, announces that
it has acquired the entire issued share capital of CorEnergy Limited
("CorEnergy"), a business focused on delivering sustainable energy solutions
for public and private sector organisations.
CorEnergy was established in 2014 to provide support to public and private
sector organisations to assist to reduce energy, improve efficiency and save
carbon by providing multi-disciplinary capabilities across a range of energy
efficient products, including: LED lighting/controls, solar PV, EV charging,
battery storage and renewable heating solutions. CorEnergy's key sectors
include Education, Healthcare, Government, Manufacturing and Distribution.
CorEnergy specialises in high quality consultancy and project delivery within
complex environments and its services cover all phases of sustainability
projects, from initial concept, feasibility and design, to installation,
commissioning and lifetime aftercare support. Further information on CorEnergy
can be found at: www.cor-energy.co.uk (http://www.cor-energy.co.uk) .
The maximum total consideration payable for CorEnergy is £7.5 million, with
an initial £5.9 million payable on completion, to be satisfied through £2.9m
in cash and the issue of 3,281,879 new ordinary shares of 10p each in
Sureserve (the "Consideration Shares"). The Consideration Shares are being
issued at an effective price of 89.4p each, being the mid-market closing price
over the last 5 business days. Further deferred consideration of up to £1.6
million may be payable, split equally between cash and shares, depending on
CorEnergy's full year results to December 2021. The transaction is to be
achieved on a debt free / cash free basis. CorEnergy has grown through the
successful delivery of a number significant contracts and in the year ending
31 December 2021 is expected to achieve revenues in excess of £6m and EBITA
of £1m.
The Executive Directors of CorEnergy, Tom Griffin and Richard Budzynski. will
remain with CorEnergy following the acquisition by Sureserve.
Commenting on the acquisition, Peter Smith, Chief Executive Officer, Sureserve
Group plc said:
"We are absolutely delighted to welcome CorEnergy to the Sureserve Group.
"The acquisition of CorEnergy meets with our strategic objective of building
Sureserve's capabilities in the Energy Services, delivering vital services to
local and central Governments, energy companies, and homeowners. CorEnergy
supplements our services and will be immediately earnings enhancing to the
Group.
"Tom, Richard and the team will bring new skills and experience to Sureserve
and will help us to deliver reliable, efficient and innovative energy
solutions to our customers. We are excited about the type of projects they
have delivered in the past and will continue to deliver in the future. This
acquisition also marks an important step in our strategy to grow the company
through both acquisitions and organically."
Tom Griffin, Director at CorEnergy Limited, said:
"CorEnergy has achieved strong momentum over recent years providing renewable
energy and decarbonisation solutions within the fast-growing low carbon
sector. As national agendas become increasingly focused on reducing emissions,
the opportunity to join Sureserve Group presented a compelling opportunity to
drive potential further growth, opening up complementary cross-selling
opportunities and access to larger procurement frameworks. We have been highly
impressed with the strategy and capabilities of the Sureserve team and we are
delighted to have joined the Group. We very much look forward to the growth
opportunities ahead."
Enquiries
Sureserve Group
Nick Winks, Chairman 07973 316544
Peter Smith, Chief Executive Officer and Chief Financial Officer 07590 929431
Camarco (Financial Public Relations)
Ginny Pulbrook 020 3757 4992
Rosie Driscoll
Toby Strong
Shore Capital (Nominated Adviser and Broker)
Stephane Auton 020 7408 4090
Daniel Bush
Fiona Conroy
020 7408 4090
Notes to editors
Sureserve is a leading compliance and energy services group that performs
critical functions in homes, public and commercial buildings, with a focus on
clients in the UK public sector and regulated markets. Services are delivered
through two divisions: Compliance and Energy Services.
The Group was founded in 1988 and is headquartered in Dartford. It currently
employs some 2,489 staff from 22 offices across the UK.
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