Drax is set to acquire business energy supplier Opus Energy in a £340m deal.
Drax said Opus, which last year generated sales of £323m to small and medium businesses as well sales of £214 million to corporates, would complement its existing supply business, Haven Power.
However, Opus’ chief executive, Charlie Crossley Cooke, chairman, Fred Esiri and managing director Louise Boland, will leave the business following the takeover, which is subject to Drax receiving EU state aid clearance for the contract for difference (CfD) it was handed by the UK government.
Jonathan Kini, CEO of Haven Power (pictured), will now have overall responsibility for Drax’s two retail businesses, subject to the deal going through.
The acquisition will be of interest to third party intermediaries. Opus currently deals with around 160 TPIs, largely for its SME sales operations.
Opus claims it is the UK’s largest non-domestic energy supplier outside of the Big Six, with a non-domestic market share of 8% by meter count.
For the financial year ended 31 March 2016, Opus reported a turnover of £573 million, up 9% year on year. The firm, which makes more than half its revenue from SMEs, also reported a profit margin of almost 20%: Gross profit for the year ended 31 March 2016 was £107 million, up 10%.
See the full announcement here.