Energy Assets, the largest independent provider of gas metering services to the UK Industrial and Commercial market, announced that it has reached agreement with Gazprom Marketing & Trading Ltd to acquire its wholly owned subsidiary, Gazprom Global Energy Solutions Limited.
Energy Assets acquired Gazprom Global Energy Solutions for an enterprise value of £13.5m, which includes an initial cash consideration of £6.0m, potential cash earn-out payment of £3.0m (payable dependent upon the level of data logger installations carried out by Energy Assets) and existing GGES debt of £4.5m that is to be refinanced upon acquisition.
Based in Manchester, GGES is part of the Gazprom group, one of the world’s largest energy companies, and provides fully integrated Metering, Automated Meter Reading and Siteworks services to gas suppliers and blue-chip clients across the I&C sector. GGES manages a portfolio of approximately c.27,000 data points across gas, water and electricity sectors. When combined with Energy Assets’ existing portfolio of c.21,000 data loggers, the resulting logger portfolio will be one of the most significant in the UK I&C market.
Completion of the GGES acquisition will significantly enhance each of the Energy Assets business divisions, providing additional scale and expertise to the Group whilst formalising the metering and technical services’ relationship built with Gazprom Energy over time. The acquisition brings with it GGES’s AMR technology for both gas and water applications, low power radio data collection technology and a range of products and IP. Gazprom will retain the rights to use the IP in the AMR technology in Russia, Germany and the FSU countries.
Phil Bellamy-Lee, Chief Executive of Energy Assets, commented: “I am delighted to announce the acquisition of Gazprom Global Energy Solutions from Gazprom Marketing & Trading Ltd, one of the fastest growing energy companies in Europe. This transaction provides Energy Assets with a fantastic opportunity to continue the development of the long standing relationship between the two companies and 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.”
Vitaly Vasiliev, CEO of Gazprom Marketing & Trading commented: “We have worked with Energy Assets for some years in a strategic partnership. Gazprom Energy is a customer-focussed business that prides itself in offering customers an excellent experience. We know from experience that Energy Assets offers our customers great service and will continue to do so. This deal offers those customers an ongoing commitment to excellence and allows both our businesses to concentrate on activities that are key to our core plans for growth.”
LNG World News Staff, October 12, 2012; Image: Energy Assets