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Hargreaves selling Brockwell Energy
Posted on Tuesday, 09 October 2018 13:22
London Aim-listed Hargreaves Services has unveiled the signing of an agreement to offload Brockwell Energy to Lantern Bidco, a vehicle formed by unspecified investors with experience in UK energy infrastructure.
Under the terms of the deal, the acquiror will pay GBP 23.00 million in cash for the business, although GBP 2.00 million of this amount will take the form of an earn-out, subject to an undisclosed future project closing successfully from a financial standpoint.
Completion is expected to take place by 19th October at the latest.
The vendor’s chairman, Roger McDowell, said the acquiror had demonstrated its commitment to successfully developing Brockwell’s portfolio of renewable energy assets.
Hargreaves describes itself as a diversified group delivering services to the industrial and property sectors.
The Durham-headquartered company employs in excess of 2,000 people and owns 17,500 acres of land throughout the UK.
It posted revenue of GBP 297.12 million in the year ended 31st May 2018, compared to the GBP 342.71 million recorded over the preceding 12 months.
Gross profit for the period totalled GBP 30.37 million, narrowed from a profit of GBP 32.88 million in fiscal 2017.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 857 deals targeting electric power generation companies announced worldwide since the beginning of 2018.
Of these, the largest is worth 14.60 billion and involved Dominion Energy picking up South Carolina-headquartered Scana. Completion of that deal is expected to occur by the end of this year, subject to the green light from regulators.
Second place saw China Three Gorges upping its holding in Spain-based wind power player EDP Renovaveis from 82.6 per cent to 100.0 per cent for USD 9.06 billion.
Other companies in the sector to have been targeted this year include Hornsea 1 Offshore Wind Farm, Snowy Hydro and FirstEnergy.
© Zephus Ltd