Industrial gas meter specialist Energy Assets is to buy a Clackmannanshire utility networks company for up to £5 million.
The Livingston-based group said the acquisition of Blyth Utilities would enable it to provide multi-utility infrastructure across gas, electricity and water, while creating “growth opportunities to businesses within the UK house building sector”.
Alva-based Blyth employs about 80 people and in the year to 31 March generated an operating profit of £400,000 on turnover of £7.2m.
Energy Assets will pay an initial £1.5m in cash for the business, along with 200,784 shares currently worth £1m, which are subject to Blyth’s sellers remaining with the group for two years. A further payment of up to £2.5m, split evenly between cash and shares, will also be paid after a three-year earn-out period.
Phil Bellamy-Lee, chief executive of Energy Assets, said: “The acquisition will allow us to expand our services to become a fully accredited multi-utility infrastructure provider in the commercial area and, following on from the recent government announcement that investment in the housing sector will double to support home ownership and a pledge to deliver additional new homes across the UK by 2020, will also enable us to extend our infrastructure offering to businesses within the UK housebuilding sector at a very exciting time.”
Colin Lynch, joint managing director of Blyth, added: “Blyth has been delivering high-quality infrastructure solutions to our customers for many years and has gained a strong reputation within the industry.
“We are delighted to now have the opportunity to grow the business further by being part of a wider group and are confident that the support that Energy Assets can offer will allow us to achieve our long term growth strategy.”