Drax completes multi-million pound Scottish Power deal

Drax Group plc has acquired elements of Scottish Power’s pumped storage, hydro and gas-fired generation portfolio.

Announced in October and completed this morning (January 2), the £702m deal comprised Scottish Power Generation Group and its SMW subsidiary.

Speaking when the transaction was first revealed, Drax boss Will Gardiner said: “I am excited by the opportunity to acquire this unique and complementary portfolio of flexible, low-carbon and renewable generation assets.

“It’s a critical time in the UK power sector. As the system transitions towards renewable technologies, the demand for flexible, secure energy sources is set to grow.”

The acquisition is expected to deliver an EBITDA boost of up to £110m and a gross profit of between £155m and £175m.

Drax Group is the energy firm behind Drax power station in North Yorkshire – the UK’s biggest power plant.

In 2017, the company is believed to have contributed almost £1.6bn towards the UK GDP.