Deal Secures Further Development Of Sustainable Energy Solutions

The corporate team at Irwin Mitchell has advised CorEnergy on the sale of the sustainable energy solutions specialist to the compliance and energy services group Sureserve in a £7.5m deal that will enable CorEnergy to capitalise on the growth opportunities that lie ahead.

Led by partner Victoria Zivkovic and supported by solicitor Greg Mazgajczyk, the Irwin Mitchell team advised CorEnergy on a move that supports the firm in pursuing its drive towards providing renewable energy and decarbonisation solutions post the recent Cop26 climate change conference.

Established seven years ago to provide support to public and private sector organisations in improving energy efficiency and saving carbon, CorEnergy provides multi-disciplinary capabilities across a range of energy efficient products, including: LED lighting, solar, EV charging, battery storage and renewable heating solutions.

The firm’s success has seen CorEnergy establish itself as a trusted provider in the education, healthcare, government, manufacturing and distribution sectors, by covering all phases of sustainability projects; from initial concept, feasibility and design, to installation, commissioning and lifetime aftercare support.

The Executive Directors of CorEnergy, Tom Griffin and Richard Budzynski will remain with CorEnergy following the acquisition by Sureserve.

Tom Griffin, director at CorEnergy Limited, said: “CorEnergy has achieved strong momentum over recent years providing renewable energy and decarbonisation solutions within the fast-growing low carbon sector.

“As national agendas become increasingly focused on reducing emissions, the opportunity to join Sureserve Group presented a compelling opportunity to drive potential further growth, opening up complementary cross-selling opportunities and access to larger procurement frameworks.

“We have been highly impressed with the strategy and capabilities of the Sureserve team and we are delighted to have joined the Group. We very much look forward to the growth opportunities ahead.”

The maximum consideration payable for CorEnergy is £7.5 million, with an initial £5.9 million on completion, to be satisfied through £2.9m in cash and the issue of 3,281,879 new ordinary shares of 10p each in Sureserve. The transaction is to be achieved on a debt free/cash free basis.

Expert Opinion

“In just seven years, CorEnergy has established itself as a key player in energy services. It’s a pleasure to have worked with the team on a deal that will allow CorEnergy to grow its own services but will doubtless play a key role in helping Sureserve support its customers, as the firm continues its own impressive growth in the marketplace.” Victoria Zivkovic - Partner

CorEnergy has grown through the successful delivery of a number of significant contracts and in the year ending 31 December 2021, is expected to achieve revenues in excess of £6m and EBITA of £1m.