One of the UK’s biggest heating and renewable energy services suppliers has backed a £306 million takeover by support services giant Carillion.
Eaga, which was founded in 1990 and employs around 4,000 people, describes itself as working with the government, local authorities and housing associations to lower carbon emissions and energy consumption, principally in low-income households.
The Newcastle-based company is one of the UK’s largest installers of central heating systems and provides emergency breakdown cover and servicing for 160,000 local authority and social housing properties.
Wolverhampton-based Carillion said it identified the low-carbon market as a strategic area of growth and Eaga will enable it to build the UK’s largest independent energy services provider.
Eaga’s board recommended its shareholders back the 120p a share offer, as it will be in a better position to realise its prospects as part of a larger group. Carillion followed this by acquiring a further 12 per cent of Eaga shares, in a move that takes its stake in the company to 53 per cent.
Carillion employs some 47,000 people in the UK and overseas, and generates sales of more than £5 billion a year. Its projects portfolio includes schools, hospitals, prisons and defence projects.
The largest is the Allenby Connaught project for the Ministry of Defence. It involves replacing and managing army accommodation in the south of England.