Centrica plc acquires Neas Energy for $241 million

Written By: Stratton Report
April 21, 2016

Centrica

On April 21, Centrica plc announced it had acquired Neas Energy A/S for DKK1.6 billion ($241 million) in cash plus adjustments for cash and net working capital. Neas is a provider of energy management and revenue optimization services for decentralized third-party owned assets.

Neas reported a turnover of DKK20.4 billion ($ 3 billion) and EBITDA of DKK198 million ($30 million) in 2015.

According to the firm, Centrica’s strategy was to expand its route to market services in Europe, and to continue to utilize and build its knowledge of European energy markets in order to benefit from trading and optimization activity.

Neas serves customers in six European countries with 2,500 individual decentralized assets, including windfarms, solar plants and CHP plants, with an installed capacity of approximately 8,600MW. In addition,

Neas provides risk management, supply management and consumption optimization for wholesale electricity customers and smaller suppliers who do not have trading capabilities of their own. It has also established a short-term trading presence in power, gas and environmental certificates across 18 countries.

Centrica Chief Executive, Iain Conn, remarked:

“I am delighted to welcome Neas to Centrica. Our new strategy recognises that the energy landscape is rapidly changing, with a trend away from large centralised power generation to decentralised technologies – much of it intermittent renewable generation. Neas has developed a business model and capabilities that are able to capitalise on this trend and, combined with Centrica’s existing strengths, this acquisition will allow us to accelerate our energy marketing and trading growth strategy and serve renewable and distributed energy customers at a wholesale level across Europe.”

Neas Energy CEO, Bo Rydahl, commented: “In our efforts to grow and expand Neas’ activities in markets where competition is increasing, economies of scale will be essential to success. Becoming part of Centrica will provide opportunities to grow the scale of our existing business activities further and enter new markets. Neas will be Centrica’s spearhead for the growth of energy marketing and trading activities on the European continent.”