Benchmark International is pleased to announce the acquisition of Manchester-based CorEnergy by Kent-based Sureserve in a £7.5m deal.
CorEnergy was established in 2014 to capitalise on market growth in LED lighting and renewables. Focused on providing sustainable energy services for public and private sector organisations, the company provides cost analysis, design, supply, installation and commissioning of LED lighting and controls, solar photovoltaics, electrical vehicle charging, battery storage, and renewable heating solutions.
It is expected to achieve revenues in excess of £6m and EBITA of £1m for the year to 31 December 2021.
AIM-listed Sureserve, currently valued at £148m and employing over 2,100 people, is a compliance and energy services group. The bolt-on deal expands Sureserve’s range of energy services, with CorEnergy providing the firm with new expertise in solar power and electric vehicles.
The maximum total consideration payable for CorEnergy by Sureserve is £7.5m, with an initial £5.9m payable on completion, including £2.9m in cash and the issue of 3,281,879 new ordinary shares of 10p each. Further deferred consideration of up to £1.6m may be payable, split equally between cash and shares, depending on CorEnergy's full-year results to December 2021.
Following the acquisition, the executive directors of CorEnergy, Tom Griffin and Richard Budzynski, will remain with the company.
Mr Griffin commented: "As national agendas become increasingly focused on reducing emissions, the opportunity to join Sureserve Group presented a compelling opportunity to drive potential further growth, opening up complementary cross-selling opportunities and access to larger procurement frameworks.
"We have been highly impressed with the strategy and capabilities of the Sureserve team and we are delighted to have joined the group. We very much look forward to the growth opportunities ahead."
Peter Smith, Sureserve chief executive, said: "The acquisition of CorEnergy meets with our strategic objective of building Sureserve's capabilities in the Energy Services, delivering vital services to local and central Governments, energy companies, and homeowners.
"CorEnergy supplements our services and will be immediately earnings enhancing to the group.
"Tom, Richard and the team will bring new skills and experience to Sureserve and will help us to deliver reliable, efficient and innovative energy solutions to our customers. We are excited about the type of projects they have delivered in the past and will continue to deliver in the future.
"This acquisition also marks an important step in our strategy to grow the company through both acquisitions and organically."
Europe: Michael Lawrie at +44 (0) 161 359 4400 / Lawrie@BenchmarkIntl.com
Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com
Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com
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Benchmark International’s global offices provide business owners in the middle market and lower middle market with creative, value-maximizing solutions for growing and exiting their businesses. To date, Benchmark International has handled engagements in excess of $7B across various industries worldwide. With decades of global M&A experience, Benchmark International’s deal teams, working from 14 offices across the world, have assisted hundreds of owners with achieving their personal objectives and ensuring the continued growth of their businesses.