The £306.5m cash deal makes Carillion the largest player in the fast growing local authority and housing association energy sector, Construction Enquirer reported. The acquisition gives Carillion a combined support services revenue of approximately £3 bn.
Eaga, which turned over £762m last year and employs around 4,000 staff, runs large national projects such as the Government’s Warm Front home insulation scheme.
Carillion chairman Philip Rogerson said the acquisition brings together two complementary companies and will enhance the group’s overall position.
“Carillion has identified the low carbon market as a strategic area of growth and the acquisition of Eaga will create a scalable platform to build the UK’s largest independent energy services provider.
“This will also extend Carillion’s capability to provide integrated support services solutions for its existing customers, for whom energy services are an increasingly important requirement,” he said.
Carillion has recently made inroads into fitting solar panels to local authority buildings and homes and believes the deal will enable the firm to develop large-scale low carbon energy projects for the public sector.
Eaga has already secured contracts with a number of social landlords, giving it access to approximately 120,000 social landlord properties, with a further 200,000 properties in the pipeline.
Eaga chairman Charles Berry said he believed future prospects were better accessed as part of a larger group.
“The offer received from Carillion has come at an interesting time in Eaga’s development, as our markets are changing rapidly. Carillion offers our unique business the opportunity to grow in a strong home,” he said.
The acquisition, which is subject to approval by Eaga shareholders, the Financial Services Authority and the courts, is expected to become effective in April.