British Gas owner Centrica acquires ENER-G Cogen for £145mn

UK retailer Centrica has bought Ener-G Cogen International, a supplier and operator of combined heat and power solutions, from Ener-G Holdings for £145mn (€186mn).

According to a company filing, the business will form part of Centrica's new international distributed energy and power business and complement Centrica’s existing capability for customers in both the UK and US.

"As demand for CHP products and other distributed energy technologies grow, this acquisition strengthens our delivery capability," Iain Conn, CEO of Centrica, said May 16.

Centrica is the leading supplier of energy to retail customers in the UK, mostly under the "British Gas" brand.

Centrica is also involved in upstream gas and storage and electricity generation activities, and is an energy supplier in North America. In 2015, Centrica reported revenues of £27.9bn.

Headquartered in Manchester, Ener-G Cogen International was founded in 1984. The company delivers solutions for a variety of customers including hospitals and universities through to supermarkets and leisure centres.

Centrica plans to spend £1bn this year on acquisitions, of which half has been earmarked for the upstream. Earlier this month it spent £170mn on Danish energy supply and asset management firm Neas, so it still has another £200mn to spend on downstream assets.

Murat Basboga