One of the UK’s biggest suppliers of heating and renewable energy services has backed a £306 million takeover by support services giant Carillion.
Eaga, which was founded in 1990 and now employs around 4,000 people, works with the government, local authorities and housing associations to lower carbon emissions and energy consumption, principally in low-income households.
The Newcastle-based firm is one of the UK’s largest installers of central heating systems and provides emergency breakdown cover and servicing for 160,000 local authority and social housing properties.
Wolverhampton-based Carillion said it had identified the low carbon market as a strategic area of growth. It said the Eaga acquisition will create a platform to build the UK’s largest independent energy services provider.
Eaga’s board recommended that its shareholders back the 120p a share offer as it will be in a better position to realise its prospects as part of a larger group. Carillion acquired a further 12 per cent of shares in Eaga today in a move taking its stake in the company to 53 per cent.
Shares at energy services firm Eaga have fell 24 per cent following the Comprehensive Spending Review which highlighted the reduced budget allocated to the Warm Front scheme.
The fall in share price immediately wiped £66 million off the company’s value leaving it valued at £210m.
Carillion employs some 47,000 people in the UK and overseas, and generates sales of over £5 billion a year. Its portfolio of projects includes schools, universities, hospitals, roads, prisons and defence projects. The largest of these is the Allenby Connaught project for the Ministry of Defence involving the replacement and management of Army accommodation in the south of England.