Yü Group, supplier of gas, electricity and water to the UK businesses, has announced the acquisition of the business customer book of an undisclosed Midlands-based energy group.
- The acquisition will add c400 meter points to Yü Group’s current meter portfolio of around 14,000.
- The Board expects the acquisition to be earnings enhancing from mid-November 2020.
- The customer book consists of gas contracts to small and medium sized businesses across Great Britain.
The customer book has been acquired from a Midlands-based group, which is divesting its mains gas supply book to focus on its core activities. The customer book consists of gas contracts to a diverse customer base, operating within sectors including healthcare, manufacturing and retail. The acquired business reported around £3m of unaudited revenue for the year ended 31 March 2020.
With the customer book consisting of gas contracts there are clear opportunities for Yü Group to provide additional products and services including electricity and water. Further, Yü Group’s ability to hedge commodity volume on lower forward commodity market prices will ensure the customer book delivers attractive margins.
Terms of the acquisition
Yü Group will pay £0.2m in cash for the assets, which includes an element of consideration based on a discount to the customer receivables balance acquired, net of provision.
Bobby Kalar, Chief Executive of Yü Group, commented, “We have already successfully migrated the customers with the acquisition being imminently earnings enhancing with no noticeable additional cost to serve. Beyond this, there is further value we can provide our new customers with the additional products and services we offer.
“Following the recent successful acquisition and seamless integration of Bristol Energy, this acquisition clearly demonstrates our abilities to strategically grow our business. We now have a proven template for deals to complement our accelerating organic portfolio. We see a number of further opportunities in the market, and combined with our continued significant organic growth, are excited by the future.”
