British Gas’s parent firm Centrica Plc acquires Connaught Compliance’s gas and electricity businesses

British Gas’ parent firm, Centrica Plc Monday said its British Gas Business unit acquired the assets of the gas and electricity services businesses of Connaught Compliance. Connaught Compliance is the trading arm of the Connaught Group Plc. The transaction will be undertaken for an estimated 11.2 million pounds, to be paid in full and in cash upon sealing the deal. The investment is expected to result in a 600 strong work force for British Gas Business.

That number is inclusive of about 400 gas and electricity engineers who are specialists in installation, service and maintenance of commercial gas boilers and electrical systems. Other than that, the transaction will as well bring the firm an additional 20,000 customer contracts especially in the private sector. That will be inclusive of Connaught’s training academy in the South Wales.

The transaction is significant as it signals an important step forward for British Gas Business’ that seeks to set up a complete energy solutions business via offering service and maintenance contracts to its close to one million customers. As it stands currently, British Gas Business marks its fifth acquisition, with the latest coming in the wake of others the firm has done in the energy services and management sector in the past two years.

British Gas Business acquired firms such as BMSi, Semplice Energy, Energy and Building Management Solutions and Newnova Group. However, with the acquisition of the businesses of Connaught Compliance, British Gas Business has firmly reinforced its position in the provision of a variety of business energy services.

Such energy services include energy management, energy efficiency, building controls and renewable technologies. The 600 Connaught employees joining British Gas Business will be additional to the 5,100 new jobs in insulation, smart metering and energy efficiency which British Gas has already announced over the past two years.

British Gas Business managing director Kanat Emiroglu said the investment will give the firm the necessary platform it requires to develop and rapidly set up a complete energy solutions business. The investment will as well accelerate British Gas Business’ growth strategy in the business energy services market that is hoped to be worth 2 billion pounds by 2015.

Centrica plc is a large multinational utility company, based in the United Kingdom but also with interests in North America. Centrica is the largest supplier of gas to domestic customers in the UK.

28 Sep 2010.