Lancashire energy firm snaps up two rivals as rapid growth plan continues
A Lancashire energy consultancy has continued its vigorous acquisition strategy with the take over of two more companies.
Inspired Energy, based in Kirkham, has bought Nelson based Businesswise Solutions and Lincolshire-based General Energy Management Limited (GEM).
Inspired is paying £6m for Businesswise but this could rise as the deal has included a further consideration of up to £23.5m, if the company goes on to achieve “challenging EBITDA and Order Book growth targets” over the next three years and ends with an order book of more than £19m.
The 43 employees and the chief executive will remain in post and the firm will continue it its Nelson premises.
The GEM deal is for an initial payment of £1.5m to the shareholders of GEM, with deferred consideration of £250,000 payable at December 31 this year, and a potential further contingent cash consideration of up to £250,000 payable based on achieving a target level of contracted future revenues.
The money for both deals comes from proceeds of the Inspired’s £31.3m fundraise in July 2020, which was earmarked for value enhancing acquisitions, in line with the group’s strict acquisition criteria that it has retained since IPO in 2011.
The deals take Inspired’s corporate order book to more than £73m. and it said they will add to earnings in 2021.
Businesswise is an energy consultant based in Nelson, which currently has an order book of £10m and 340 customers. Its pre-tax profit in 2020 was £1.15m. It is already is a customer of Systemslink, part of Inspired Energy’s software solutions division, which Inspired said would allow quicker integration into its group.
GEM provides energy services to corporate customers in a range of sectors, with a strong presence in the food manufacturing and distribution sector. Its pre-tax profit in 2020 was £250,000.
Commenting on the acquisitions, Mark Dickinson, chief executive of Inspired Energy said: “We are delighted to conclude the acquisition of Businesswise and GEM, which are highly complementary additions to the group.
“Both acquisitions increase our market share for Energy Assurance services, broaden our customer base and significantly increase our units of opportunity.
“We look forward to working closely with the highly experienced and knowledgeable teams of both businesses and welcoming them into the Group as we continue to advance our position as a market leader.”
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