Sureserve snaps up efficiency specialists CorEnergy in £7.5m deal
Sureserve Group (Sureserve) has acquired efficiency consultants CorEnergy (Cor) for £7.5m.
The bolt-on deal expands Sureserve’s range of energy services, with Cor providing the firm with new expertise in solar power and electric vehicles.
CorEnergy was established in 2014 as a consulting firm that helps public and private sector groups improve their energy efficiency and reduce carbon emissions.
It offers sustainable solutions such as LED lighting, solar panels, electric vehicle charging, battery storage and renewable heating.
Its key sectors include education, healthcare, government, manufacturing and distribution.
Cor has grown through the delivery of multiple contracts and in the year ending 31 December 2021 is expected to achieve revenues in excess of £6m and EBITA of £1m.
The agreement includes an initial £5.9 million, paid by £2.9m in cash and the issue of over 3m new ordinary
Further payments of up to £1.6 million are achievable, and will be split equally between cash and shares – depending on CorEnergy’s full year results to December 2021.
The executive directors of CorEnergy, Tom Griffin and Richard Budzynski will remain with CorEnergy following the acquisition by Sureserve.
Commenting on the acquisition, Peter Smith, chief executive of Sureserve 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.”
Investment analysts Peel Hunt said they “view the acquisition positively” and have reaffirmed the group’s “Buy” stance towards the stock, and raised the target price from 90p to 110p a share.
Following the announcement, shares in Sureserve – are up 2.69 per cent on the FTSE AIM All-Share on Wednesday morning.
The company is currently valued at £148m.