An industrial gas meter operator based in Livingston has completed the acquisition of a subsidiary of a long term partner, in a deal valued at £13.5m.
The firm, Energy Assets Group (EAG), says the deal will allow its data collection capabilities to be doubled. The firm also says the purchase of Gazprom Global Energy Solutions (GGES) will help formalise the partnership between itself and Gazprom.
The deal will see an initial purchase price of £6m, with a data log installation related payment of up to £3m following. The remaining cash will be spent on furnishing GGES’ debts.
EAG, which is using the funds of its recent stock market flotation to finance the deal, will refinance its new arm once the deal is complete.
Many companies are taking the opportunity to refinance many parts of their operations at present. More still are looking at new ways to finance their operations, with invoice factoring proving a popular strategy.
Talking about the deal, the Chief Executive for EAG, Phil Bellamy-Lee, said:
“This transaction provides Energy Assets with a fantastic opportunity to continue the development of the long-standing relationship between the two companies.
“[It] is a significant step in the delivery of Energy Assets’ strategy to increase meter asset management and ownership as set out at the time of the IPO (Initial Public Offering).”
At present, EAG manages more than 50,000 meters in the UK commercial and industrial sectors. This figure is set to rise though, with the deal also providing the group with exclusivity to install new meters and exchanges throughout Gazprom’s UK portfolio.