Carillion snaps up renewable energy firm
Construction firm Carillion is to buy sustainable energy business Eaga for £306 million.
Eaga supplies efficient and renewable energy products, including high-efficiency boilers and photovoltaic panels.
It suffered a blow last year when the government announced cuts to the warm front programme.
This provides insulation and heating for people with disabilities or on benefits, and will be cut from £345 million a year to £100 million by 2013. The scheme last year contributed 44 per cent of Eaga’s revenue.
Charles Berry, chair of Eaga, said: ‘While there are exciting future prospects, we believe these are potentially better accessed as part of a larger group.’
Philip Rogerson, chairman of Carillion, said: ‘Carillion has identified the low-carbon market as a strategic area of growth and the acquisition of Eaga will create a scalable platform to build the UK’s largest independent energy supplier’.
Analysts Panmure Gordon said: ‘The big opportunity is for Carillion to deliver low carbon solutions into its broad customer network.
‘This may lead to a shift in focus away from Eaga’s core domestic offering.’