Retail Supplier Parent Acquires CHP Business To Enhance Distributed Energy Offerings

Centrica has acquired ENER-G Cogen International Limited, a supplier and operator of combined heat and power (CHP) solutions with operations in the U.S. as well as internationally, to enhance its distributed energy offerings.

Centrica acquired ENER-G Cogen International Limited from ENER-G Holdings PLC for £145 million

ENER-G Cogen has 30 years experience delivering end-to-end CHP solutions for industrial and commercial customers, and has around 1,400 units totaling over 500 MW under contract.

The business operates predominantly in the UK but also has operations in the United States, Hungary, Italy, the Netherlands and Romania. It also participates in Australia, Ireland, Japan, Canada and Turkey through sales partnerships with local entities.

The acquisition of ENER-G Cogen will immediately contribute to cash flow and earnings, Centrica said

The business will form part of Centrica's new international Distributed Energy & Power business and complements Centrica's existing capability in installing and managing distributed systems for customers in both the UK and U.S., Centrica said.

ENER-G Cogen's core product catalog is made up of a proprietary range of standard CHP units from 25 kW to 530 kW. The business also offers systems from 0.5 MW to 2.5 MW and above, designed on a bespoke basis.

The final cash consideration paid by Centrica may be subject to small adjustments for working capital and other items.

ENER-G Cogen will form part of Centrica's Distributed Energy & Power business, which expects to invest £700 million into the new business by 2020. Centrica's Distributed Energy & Power business already has over 1,000 customers across 3,700 sites in the UK and U.S.

This is the second of two prioritized and attractive customer-facing acquisitions announced by Centrica in recent weeks, for a combined consideration of approximately £350 million. Centrica previously announced it has agreed to acquire Neas Energy, one of Europe's leading providers of energy management and revenue optimization services for decentralized third-party owned distributed generation assets.