British Gas acquires JK Environmental Services (UK) and ECL Contracts

JK Environmental Services (UK) and insulation contractor ECL Contracts have both been taken over by British Gas. JK Environmental Services is an Environmental services contractor. Currently, British Gas' Electrical and Dyno Services business, which includes Dyno-Rod, is already the market leader in domestic drain-cleaning service.

Hertfordshire-based JK Environmental Services was bought for £7 million. According to British Gas, the investment is designed to strengthen its position in the industrial and commercial sector, with a particular focus on water and sewerage companies.

On its part, ECL Contracts was purchased for £4 million. ECL Contracts is a specialist in external-wall insulation. Its acquisition is expected to enable British Gas diversify from loft and cavity-wall insulation into solid-wall insulation.  There are around nine million homes in the UK of solid wall construction, British Gas said.

JK Environmental will become part of Dyno-Rod but will continue to operate under its own name and continue to deliver existing contracts. All 102 employees, who operate from depots across the Midlands and southern England, are joining Electrical & Dyno Services.

Nina Bhatia, managing director, Electrical & Dyno Services noted that the acquisition of JK Environmental Services gives Dyno-Rod a significant presence in the industrial and commercial sector, complementing its market-leading position in the residential sector and providing a strong platform for future growth.

Electrical & Dyno Services’ focus will be on expanding its activity with the UK's water and sewerage companies.  The firm will also actively consider how JK Environmental Services' complementary skills can add value to British Gas' commercial and local authority customers and create opportunities to win further business, said Bhatia.

ECL Contracts is based in Rugby and employs 31 staff. British Gas’ insulation business already has 1,100 employees across the country and it aims to be the leading supplier of domestic insulation. Demand for home insulation is forecast to rise significantly in the next five years.  Currently, £1 in every £4 spent on domestic energy is wasted because of poor insulation, British Gas said.

Spending on home insulation is predicted to rise from around £600m a year in 2010 to £1.4bn in 2015.  Government programs such as the Green Deal are also expected to make energy efficiency more attractive to British households. Jon Kimber, managing director of British Gas New Energy, noted that the acquisition is part of the continuing success story of the British Gas insulation business.

10 Dec 2010.