Announcing The Acquisition Of EIC

Announcing The Acquisition Of EIC

We’re pleased to announce the acquisition of the Energy Information Centre Limited (EIC).

We’re pleased to announce the acquisition of the Energy Information Centre Limited (EIC).

Established in 1975 and based in Redditch and Bury St Edmunds, EIC has a strong reputation in the Industrial and Commercial sector, an area that complements our own leading position in the SME market.

The addition of EIC will increase our overall products and services range as we seek to provide the very best energy solutions for clients of all sizes and energy needs. EIC will bring to Utilitywise a flexible buying capability and a range of energy procurement solutions to complement our existing services.

The acquisition is for a total equity consideration of £15.5 million, to be satisfied by:

  • £10.5 million in cash
  • £5 million in new Utilitywise shares
  • In addition, Utilitywise will repay EIC’s existing mortgage debt of £1.94 million

Geoff Thompson, CEO, said: “The acquisition of EIC creates an energy procurement and consultancy firm of real scale and adds further products and expertise to our already impressive portfolio. EIC’s strength lies predominantly in the larger, Industrial & Commercial segment of the market, an area which we had identified as a strategic area of growth, which combined with our market leading position in the SME segment gives us a strong foothold across the market and an excellent platform for growth. Utilising our outstanding proprietary IT and business analysis systems and our combined product range, we believe that we can identify and target a much greater portion of the I&C market, maximise the strength of the EIC brand and, thereby, the return on this investment for our shareholders.

“Since Utilitywise listed on AiM we have carefully added strategic, complementary offerings to our business through the acquisitions of Clouds (energy management) and Aqua Veritas (water consultancy). With the addition of EIC we now have an extremely compelling portfolio of products and services to meet the diverse energy needs of clients of all sizes and the expertise to deliver them. I would like to thank shareholders for their continued support as we continue to look to the future with great confidence.”

Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB) has provided an £8m revolving facility to support the acquisition in conjunction with a revolving £2m in working capital funding to assist with the acquisition and provide funding support for future requirements.  The Newcastle-based office at RBS CIB has also become the day-to-day business bank for Utilitywise, taking over the relationship from a long-term incumbent.

Graham Robinson, relationship director, Royal Bank of Scotland Corporate & Institutional Banking, said: “We are delighted to be working with Utilitywise.  This is a strong, growing business and a true success story for the North East.  We have worked hard to deliver an effective, innovative funding solution and are delighted to welcome the business as a day-to-day banking client.  We remain firmly committed to making RBS CIB the bank of choice for businesses in the North East and I’m absolutely delighted that Utilitywise has seen the strength of our proposition.”

Longstanding Utilitywise adviser Clive Owen, led by corporate finance partner Angus Allan and associate director Ben Williamson, gave financial advice and transaction support services on the acquisition.

The Eversheds team was led by corporate and energy partner Charles Reynard together with Jonathan Pollard, Simon Procter, Stephen Cairns, Rob Hill, Alistair Cree, Dan Taylor and Paul Chanter.

Read the full RNS notice here.

Utilitywise

Posted by on Thursday, the 13. June at 10.49

Utilitywise has been helping businesses manage their business utilities since 2006. With over 40,000 customers across Europe, we help businesses save time, save effort and save money by reducing their energy and water consumption.