Renewable electricity supplier Good Energy has acquired a solar installation business for £4m.
The Wiltshire-headquartered company announced that it had acquired the entire issued share capital of Wessex EcoEnergy. This builds on the AIM-listed firm's acquisition of Igloo Works in December 2022.
Wessex EcoEnergy represents a further milestone in delivering Good Energy's strategy to expand its capability in decentralised energy services. It also supports Good Energy's ambition to help one million customers cut carbon by 2025.
Having established itself as a solar installer since acquiring Igloo Works, this transaction will enhance Good Energy's solar installation capabilities as demand grows. Installations have increased over 125% to 132,000, with domestic installations accounting for 88% of the volumes in 2022.
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Wessex EcoEngery will report under Good Energy services division and continue to operate under its own brand, but will now benefit from being able to offer a full energy service package including solar, storage, heat and export tariffs for its customers. Services will be marketed to both Good Energy's existing 270,000 customers and new prospects focused in the South West of England.
Good Energy acquired Wessex EcoEnergy on a debt free, cash free basis for an initial consideration of £2.5m. Deferred consideration of up to £1.5m is payable in cash by Good Energy dependent on the achievement of certain financial and non-financial milestones, over an 18-month transition period to 31 December 2024.
Nigel Pocklington, chief executive of Good Energy, said: "Good Energy is fast becoming the UK's go-to all-in-one solar service company. We have the second largest solar generating customer base, paid out a record amount for solar power last year and have launched market leading smart export tariffs. Bringing Wessex into the business accelerates our solar and storage installations business, as the solar surge which saw installs grow 125% in 2022 continues.
"Not only does Wessex ECOEnergy's purpose align with Good Energy's, its premium, trusted positioning in the South West aligns with Good Energy too."
For the financial year ended October 31 2022, Wessex EcoEnergy reported sales of £2.2m and a net profit of £0.3m. The company was founded in 2014 by Daniel Cole and Martin Hawkins, who are the majority shareholders. Both will remain with the business on completion.
Mr Pocklington added: "There is a £5 to £10bn growth opportunity in clean energy technology installations among climate conscious consumers. With our trusted legacy and green-motivated existing customer base we are positioned to be a major player in this, and are already kitting out homes with heat pumps, solar and batteries. Now we're supercharging our solar services."
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