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Highlights:
- Good Energy acquires Amelio Enterprises: The £6m deal expands Good Energy’s solar installation capabilities in the commercial, education, and public sectors.
- Material contribution to earnings: The acquisition is expected to boost Good Energy’s earnings starting in 2025.
- Positive market reaction: Shares in Good Energy rose by nearly 6% following the announcement of the acquisition.
Renewable electricity supplier Good Energy Group, listed on AIM, has announced the acquisition of Lincolnshire-based solar installation company Amelio Enterprises for £6 million. The acquisition strengthens Good Energy’s position in the decentralised energy services market and extends its reach in the commercial solar sector, especially within the education and public sectors. This deal supports Good Energy’s ongoing strategy to expand its clean energy offerings and broaden its geographical footprint in the solar installation industry.
Under the terms of the deal, Good Energy will pay £5.5 million in cash immediately upon completion, with an additional deferred consideration of up to £0.5 million due in the first quarter of 2025, contingent on profit targets being met. The company has stated that it will fund the acquisition using existing resources, while maintaining sufficient balance sheet flexibility to continue pursuing its growth strategy.
Amelio Enterprises brings extensive experience in the solar sector, particularly in delivering projects for commercial, education, and public sector clients. The acquisition is expected to contribute materially to Good Energy’s earnings beginning in 2025. Nigel Pocklington, CEO of Good Energy, commented on the acquisition, stating, "Amelio Solar is a perfect fit for Good Energy as we continue to grow our clean energy service offerings, especially in the commercial and public sectors where demand for solar installations remains strong and less susceptible to the cyclical fluctuations seen in the domestic market."
The acquisition comes as part of Good Energy’s ongoing effort to bolster its position in the renewable energy market, capitalizing on the growing demand for clean energy solutions. The stock reacted positively to the announcement, with shares rising nearly 6% to 275p following the news.
