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Highlights
- Strategic Acquisition: Good Energy announces the acquisition of Empower Energy, a solar installation company, to bolster its commercial installation capacity.
- Financial Terms: The acquisition involves an initial payment of £7.0 million, with a mix of cash and shares, and further deferred consideration of £1.0 million in 2026.
- Earnings Enhancement: The acquisition is expected to significantly enhance earnings from FY25 onwards and contributes to Good Energy's growth strategy in the solar market.
Good Energy Group PLC (LSE:GOOD), a leading supplier of 100% renewable electricity, has announced a conditional binding agreement to acquire Empower Energy Limited, a commercial-focused solar installation company. This strategic acquisition is set to further strengthen Good Energy’s position in the solar installation market, following its recent acquisition of Amelio Enterprises Limited on October 4, 2024. The Board anticipates that these acquisitions will substantially enhance earnings for the fiscal year 2025 and beyond.
This marks Good Energy’s fifth acquisition in the last two years and the fourth focused on solar installation services. The addition of Empower, along with the recently acquired Amelio based in Lincolnshire, significantly enhances Good Energy's existing solar installation capabilities, particularly in the southern regions of England. This integration is a major step toward achieving the company's strategic objectives within the solar market.
Transaction Highlights
Under the terms of the acquisition, Good Energy will acquire 100% of the issued share capital of Empower on a debt-free and cash-free basis for an initial consideration of £7.0 million. This initial payment comprises £6.25 million in cash upon completion, alongside the allotment of 254,237 new ordinary shares at a price of 295 pence per share. The vendors will retain these shares, which will be subject to a twelve-month lock-up period, followed by an additional twelve-month orderly market period.
Additionally, a deferred consideration of £1.0 million will be payable in cash in January 2026, contingent upon certain retention arrangements related to Ryan McShea, the Founder and Managing Director of Empower.
In its financial year ending August 31, 2024, Empower reported unaudited revenues of £10.1 million and a profit before tax of £1.8 million. Ryan McShea will join Good Energy’s team to facilitate the growth and integration of Empower into the Group, bringing valuable expertise and leadership to the transition.
Empower is capable of servicing clients nationwide, with a particular focus on its core territory of Hampshire and the South of England. This acquisition will significantly expand Good Energy's commercial installation footprint, allowing the company to enhance its service offerings and operational efficiency in the growing solar market.
Funding and Future Growth
The acquisition will be funded using Good Energy’s existing resources, allowing the company to maintain a healthy cash balance to support ongoing organic growth. T
