THE BUSINESS customer base of Bristol Energy has been acquired by Yü Energy for £1.34m, the two companies announced today.
Bristol Energy, which is owned by Bristol City Council, is a national gas and electricity company supplying around 4000 business meter points.
Today Yü Energy has announced it will take forward the energy supply for all Bristol Energy business customers, including existing contracts with Bristol City Council, with immediate effect.
Bobby Kalar, Chief Executive of Yü Group, commented on the announcement: “We are delighted to have successfully executed the purchase of Bristol Energy’s B2B Book post extensive due diligence.
“The transaction allows the Group to layer in a fantastic customer base to our accelerating organic portfolio and increase value by offering additional products and services not available previously.
“This Acquisition forms part of our strategic growth plan, leverages our disciplined controls and scalable technology platform and highlights the Group’s ability and appetite to scale.
“Immediate opportunities to synergise the customer book will further our ability to extract value while keeping overheads down.
“Management’s objective will be to transition Bristol Energy customers onto our platform quickly and seamlessly while enhancing value and creating a proven template for further value additive potential acquisitions.
“I remain convinced that there is a substantial market opportunity for Yü Group.
“With significant organic growth potential and a strong balance sheet, we see a great opportunity to increase market share and drive sustainable, profitable growth, creating value for all our stakeholders.”
Earlier this year Bristol City Council announced its intention to put Bristol Energy up for sale.
Based on management accounts, the B2B book of Bristol Energy, for the financial year to 31st March 2020, showed revenues of £15.2m and generated an operating loss of £0.48m.
The acquisition increases Yü’s portfolio to over 13,000 meters.
Bristol Energy has established relationships with a focused customer base in Bristol and the South West.
All customers are on fixed contracts with the opportunity for fully green products.
The B2B Book supplies a broad range of sectors, including Bristol City Council, consisting of a broad range of gas and electricity supply contracts running for up to three years, servicing a range of public sector and business customers.
The Acquisition does not include Bristol Energy’s forward commodity purchases.
The majority of Bristol Energy’s business energy staff will move across to Yü Energy as part of the sale.
Allan Booth, Managing Director of Bristol Energy, commented: “It was important that we found the right partner for our business energy customers whose values were consistent with those of Bristol Energy.
“Yü Energy has demonstrated its commitment to continue tackling social and environmental challenges such as climate change and supporting social causes for the benefit of our local community.
“Working together with the team at Yü, I am confident that we will provide a smooth transition for our business customers and staff.”
Yü Energy has no involvement in the domestic retail market.
A target deal for the domestic residential side of Bristol Energy is being progressed separately and is still subject to negotiation.
You can read the full acquisition report here