Partner Article

Eaga to be bought for £306m

North-East based energy efficiency firm Eaga will be acquired by support services giant Carillion in a £306m deal.

Eaga, which has about 4,000 staff, works with the government and local councils on low carbon energy projects.

Carillion said that it had identified the low carbon market as a strategic area of growth.

The deal comes two weeks after Eaga’s financial results saw it post a £5m loss for the half-year.

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.”

Eaga has been hit by public spending cuts, particularly the phasing out of the Warm Front scheme to install insulation and new heating in poorer households.

Carillion has more than 47,000 staff in the UK and overseas, and generates annual sales of over £5bn. Its portfolio includes schools and roads projects, as well as projects in the defence industry.

This was posted in Bdaily's Members' News section by Ruth Mitchell .