UK-based Mitie Group, an outsourcing and energy services company, has entered into a sale and purchase agreement to acquire the entire issued share capital of Custom Solar, a solar power solutions company specializing in the development, design, installation, and maintenance of solar projects for residential and industrial consumers.
The acquisition strengthens Mitie’s end-to-end green energy solutions.
The staff and senior management team of Custom Solar, including Managing Director, Matthew Brailsford, will join Mitie.
The transaction consideration comprises an initial payment of £8 million (~$10 million), with deferred payments of up to £4.4 million (~$5.5 million) by the end of FY25, linked to performance targets.
The acquisition will be made cash-free and debt-free, with a normalized level of working capital. The transaction is expected to complete on June 30 and will be funded through existing facilities.
According to Solar Energy UK, with the demand for sustainable energy solutions increasing considerably, UK solar power generation is targeted to reach 40 GW in 2030, up from current levels of 14 GW.
“The acquisition of Custom Solar continues Mitie’s strategy of investing in high growth, high return businesses within the energy and decarbonization market to help our customers accelerate their path to Net-Zero,” said Simon Venn, Managing Director, Technical Services, at Mitie.
Earlier this week, German-based Sonnen – which produces home energy storage systems for private households and small businesses – has acquired Webatt Energia, an installer of solar PV and energy storage products. With the acquisition, the unit will operate as Sonnen Spain. The acquisition supports Sonnen in expanding its sales and creates additional capacity for future growth.
According to Mercom’s Q1 2022 Solar Funding and M&A Report, 29 solar M&A transactions were recorded in Q1 2022 compared to 43 in Q4 2021. In a YoY comparison, there were 20 solar M&A transactions in Q1 2021.