Acquisition
June 25 2007 - 3:02AM
UK Regulatory
RNS Number:9158Y
Eaga plc
25 June 2007
eaga plc ("eaga" or the "Group")
Acquisition of RG Francis Limited for #11.2m
Residential energy efficiency provider eaga plc today announces the acquisition
of heating installation and repair company RG Francis Limited ("RGF") for up to
#11.2m.
The acquisition is the first since eaga plc's flotation earlier this month and
reflects the Group's continued strategy of growth in the highly fragmented
social housing sector.
Essex-based RGF specialises in the social housing market. It will form part of
eaga's Installation Services operations, with its geographic footprint for
delivery into social housing in the South East complementing eaga's existing UK
coverage in the Midlands, the North East and Northern Ireland.
eaga aims to build on RGF's' strengths, particularly through its servicing
contracts, by bringing in economies of scale, increasing installation capability
and introducing renewable energy options such as solar heating which is an area
of increasing focus by social housing providers and an active development for
eaga.
RGF had a turnover of #13m for the year ended September 2006. It installs around
2,000 heating systems a year and manages more than 56,000 annual service
contracts.
Key customers are local authorities, housing associations and registered social
landlords (RSLs), including Circle Anglia, Chelmar Housing Partnership, Ipswich
Council and Suffolk Heritage Housing Association.
John Clough MBE, eaga plc Chief Executive, said: "When we announced our
intention to float our key aim was to build a sustainable business and to be
able to finance strategic acquisitions where appropriate. Today's announcement
shows we are delivering on this objective.
"We already work with some of the largest social housing providers in the UK.
RGF extends our national footprint in this sector by cementing our foothold in
London and the South East."
Tim James, Managing Director of RGF, said: "This is an excellent opportunity for
our business and for our 120 staff, who will all become Partners of eaga plc and
share in the Group's future."
ENDS
Notes to Editors
*RGF has been acquired for an initial consideration of #9.6 million and a
further consideration of up to #1.6 million contingent on operating
performance for the year ending 30 September 2007. The price equates to a 7
times multiple of maintainable operating profit and is subject to adjustment
based on the working capital at completion following finalisation of
completion accounts.
*The acquisition is the first since eaga's flotation on the full list of
the London Stock Exchange earlier this month and reflects the Group's
continued strategy of growth in the highly fragmented social housing sector.
*eaga plc is the UK's largest residential energy efficiency provider. The
company is a leader in the provision of innovative and sustainable services,
products and solutions that address the environmental, social and energy
efficiency objectives of Government and the private sector both nationally
and internationally.
*Working in partnership with central and local government eaga is
positioned at the heart of policy-making and front-end delivery of social
and environmental improvement programmes. eaga operates across the UK and in
the Republic of Ireland, India and Canada employing over 3000 people.
*eaga was established in Newcastle in 1990 to lead government funded
efforts to improve the living conditions of vulnerable people living in
cold, damp and energy inefficient homes across England. Since its inception,
eaga has made a positive difference to over 5 million disadvantaged
households across the UK, by installing energy efficiency measures and
central heating.
*eaga holds the contract to deliver the #1.5 billion Warm Front programme
in England, the cornerstone of government's target to eliminate fuel poverty
by installing energy efficiency measures in vulnerable homes by 2010. eaga
also works with devolved nation governments to deliver similar schemes
across the UK.
*As a co-owned business, eaga is one of only a handful of UK organisations
where every employee with over a year's service is entitled to a share in
the success of the business. eaga's commitment to co-ownership is an
integral part of the values that define the ethos of the business and what
it means to be an eaga employee.
*The Government has set targets for all local authorities to have all
social rented homes meeting Decent Homes standards by 2010. This requires
homes to be fit for habitation, in a reasonable state of repair, with
reasonably modern facilities and services and a reasonable degree of thermal
comfort.
*Since 2000, eaga has invested over #3 million in the independent eaga
Partnership Charitable Trust which funds research into solutions to fuel
poverty.
Media Contact
Rik Kendall
Group Media Relations Manager
Eaga Group
0776 5302 701
0191 245 8342
This information is provided by RNS
The company news service from the London Stock Exchange
END
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