Ovo Energy buys brand from billionaire founder in £150m deal
Ovo Energy has bought its brand from the company’s billionaire founder in a £150m deal.
The Bristol-based firm, which is the country’s fourth-biggest household energy supplier, has made the move as part of a wider reorganisation.
It was reported last Summer that Ovo Energy was close to hiring bankers to explore fundraising options which could include bringing in new investors or a sale.
The company has more than four million customers and is the title sponsor of Wembley Arena.
Founder Stephen Fitzpatrick is the firm’s majority shareholder while other investors include Mayfair Equity Partner, Mitsubishi Corporation and Morgan Stanley Investment Management.
The deal sees Fitzpatrick handed preference shares worth £150m in the company.
Last year, Mayfair and Morgan Stanley invested a further £200m in the company after having been shareholders since 2015, raising their stakes as the energy supplier revealed a slump in earnings.
Ovo Energy is expected to file its accounts for 2024 by the end of September this year.
For 2023, the company reported a revenue of £8.7bn and a pre-tax profit of £1bn.
According to Sky News, which first reported the story, the deal includes Fitzpatrick relinquishing his role on Ovo Energy’s holding company board.
An Ovo spokesperson said: “Under the leadership of CEO David Buttress, Ovo has a simplified structure, an exceptional team, a strong financial base and a clear mission to deliver for customers.
“Ovo stands ready to accelerate its decarbonisation mission at scale.”