ERM Power Limited today announced the acquisition of Sydney-based independent engineering group, Out Performers at the cost of $12 million with an earnout over two years of up to a further $4 million.
Out performers deliver large and complex commercial and industrial energy efficiency projects aimed at the 300 largest energy users in Sydney. The list of its clients includes some of the biggest retail consumer brands, manufacturers and industrials. Out performers’ net profit before tax for the year ended 30 June 2018 was $2.3 million.
ERM Power CEO Jon Stretch said Out Performers was an excellent fit, bringing large-scale industrial project expertise and energy efficiency certificate creation capability to ERM’s existing suite of energy solutions. He added “ERM has large industrials as retail electricity customers and now, with Out Performers, can meet their full energy supply and demand needs.”
Out performers’ technical specialization in industrial energy productivity complements ERM’s existing solution having the potential to expand. Moreover, the acquisition is said to be made on a debt-free basis.
Founder of Out Performers, Duncan Stone said: “The business has engineering and project management expertise in complex industrial processes such as compressed air, HVAC, controls, gas and steam. The team also has strong capability in sub metering and process metering design, measurement and verification”
It has been reported that Out Performers’ Founder Duncan Stone and CEO Michael Wiener will continue with their roles. As per the announcement, subsequent to the completion of certain conditions, the acquisition is expected to close on 28 September 2018.
ERM’s stock has shown an excellent performance today as it grew 5.532% to $1.660 as at 6 September 2018. The stock has seen a performance change of +17.60% over the past 12-month period.
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