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European law firm, Fieldfisher, has advised on the sale of the energy management division of eEnergy Group plc to Flogas Britain Limited for around £29 million.
eEnergy Group plc is a net zero energy services provider that enables organisations to achieve net zero by tackling energy waste and transitioning to clean energy.
The net proceeds will be used to pay down the Group's debt facilities of £8.1 million in full, to reinvest into high growth energy services division which grew 87% in the 12-month period up to 30 June 2023 and for general working capital purposes.
The transaction delivers an immediate return on £23.4 million invested into the Energy Management Division since December 2020, with potential to benefit from the performance of the division through the Earnout Period. The disposal unlocks significant value for shareholders and will enable eEnergy to focus on its dedicated energy services business, driving the continued roll out of its EV and Solar products and enabling investment into other high growth opportunities.
The sale of the energy management division will allow eEnergy Group plc to focus entirely on its similar sized, high growth energy services division which grew 87% in the past 12-month period despite being undercapitalised. The sale will simplify the business and will bring opportunities to invest further in the higher growth segments of Solar and EV Charging across the UK.
The transaction was led by Corporate Director Ruth Lewis, alongside a team comprising of Partner Dominic Gurney-Champion, Joshua Cronin, Amy Kristensen and Ed Slegg, Solicitor Jamal Moursy, Tax partner Andrew Prowse, Technology & Data Partner Simon Briskman, Data Associate Tessa Waite, Commercial IP Director Vicky Reinhardt, Banking Director Anna Crosby and Paralegal Stephen Cull.
Commenting on this deal, Partner Dominic Gurney-Champion at Fieldfisher said: "We're pleased to have advised eEnergy on this important transaction which will allow them to refocus on our core business areas and accelerate growth in high-demand sustainable alternative energy sources. This strategic move not only unlocks significant value for shareholders but also aligns with broader industry trends towards sustainability and innovation in the energy sector."