Preston’s Inspired Energy plc proposes multi-million pound acquisition

Lancashire energy consultancy Inspired Energy plc is looking to snap up Irish procurement consultant Horizon Energy Group Limited in an eight-figure deal.

The Preston-based firm will initially pay €9m (£8m) on a debt-free, cash-free basis for 90% of Horizon’s issued share capital, with the option of acquiring the remaining 10% for a further €1m (£880k) in cash.

Inspired said a further €5m (£4.4m) could be payable in cash, subject Horizon achieving certain financial targets in 2017 and 2018.

To help fund the transaction, the company is proposing to raise up to £9m, before expenses, through a placing of new ordinary shares. Additionally, Inspired has secured new banking facilities of £29.6m and €7m (£6.2m) with its bank, Santander.

Horizon is based in Cork and serves a customer base that includes large corporates, SMEs and public sector bodies.

The management team at Horizon, including its founder and CEO, will remain with the group following the acquisition, which the Inspired board believes will be earnings enhancing in FY2017.

Janet Thornton, Inspired chief executive, said of the proposed acquisition: “Inspired continues to look to deliver on its growth strategy and Horizon provides an opportunity to drive growth from Inspired’s platform as it is an established business in a relatively untapped market.

“It will bring high earnings visibility, supported by a strong procurement corporate order book, and Horizon’s sales team will benefit from the cross-selling opportunities with access to Inspired’s broader capabilities, ultimately benefitting clients.”

She continued: “Ireland’s energy procurement sector is relatively underdeveloped compared to the UK, providing a significant opportunity for Inspired to deploy its expertise in increasing its presence in this market, leveraging the Enlarged Group’s experience of growth in the UK market.”

The acquisition follows another deal completed last September that saw Inspired Energy purchase Lancashire-based Informed Business Solutions Limited for £2.25m.