Clean energy provider Good Energy has announced its acquisition of solar and storage firm JPS Renewable Energy and its subsidiary Trust Solar Wholesale.
Good Energy agreed today (12 February) to acquire JPS Group for an upfront amount (initial consideration) of £7 million on a debt-free, cash-free basis.
The acquisition also includes a deferred consideration of up to £6.75 million, payable in cash over two years, subject to the achievement of certain performance conditions.
This deal follows Good Energy’s acquisition of solar installation business Wessex EcoEnergy for £2.5 million in June 2023. As part of this acquisition, Wessex will report under the Good Energy services division and continue to operate under its own brand.
Previous acquisitions and this most recent deal will contribute to Good Energy’s continuous revenue growth, as the firm marked a 45.6% rise from its H1 2022 results and H1 2023.
The company JPS Group, based in Maidstone, Kent, was founded in 2011 and has since become a prominent solar and storage installation firm.
The Group wholly owns Trust Solar, which operates as a standalone distribution and procurement business whose customers include JPS.
For the financial year that ended on 30 April 2023, JPS Group reported revenue of £12.2 million and profit before tax of £0.6 million and is expected to deliver revenue of £19.6 million and profit before tax of £1.3 million for the financial year ending 30 April 2024.
The acquisition itself is expected to be earnings accretive in the current year ending 31 December 2024.
Nigel Pocklington, CEO of Good Energy Group PLC, said that solar energy is currently “experiencing a boom in the UK” and that it will be “crucial” to decarbonising the country.
He said: “The solar installation market was worth £1.9 billion in 2023 with installations growing 38 per cent, on already strong growth in 2022. This is pronounced in the South East, which is the region with the fastest rate of domestic installations in the country.
“The JPS Group has carved a position as a leading installer across the region, serving as the solar specialist in the South East of the UK for larger homes and properties with more complex requirements. It is growing at a significant rate to help supply a specific market that is demanding premium clean energy products and services, which Good Energy is well positioned to provide as a premium, trusted and truly green energy supplier.”