Carillion to buy Eaga for £306m

Carillion is set to buy the UK’s largest national supplier of heating and renewable energy for housing and local authority buildings.

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The contractor’s recommended offer for energy specialist Eaga values the firm at £306m.

The deal gives Carillion a dominant position in the local authority and housing association energy sector.

Eaga turned over £762m last year and employs about 4,000 staff. The energy specialist runs large national projects including the government’s Warm Front home insulation scheme and has seen significant growth in fitting solar panels to local authority buildings and homes.

Carillion said the deal secured the firm’s position in the UK support services market, creating a business with a combined support services revenue of nearly £3bn.

Philip Rogerson, chairman of Carillion, said: ”The acquisition brings together two complementary companies, enhancing Carillion’s position as one of the UK’s leading support services companies.

“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.”

Charles Berry, chairman of Eaga, said: ”The offer received from Carillion has come at an interesting time in Eaga’s development, as our markets are changing rapidly.

“While there are exciting future prospects, we believe these are potentially better accessed as part of a larger group.”