EESL EnergyPro Assets Ltd, a subsidiary of state-run Energy Efficiency Services Ltd (EESL), has acquired UK-based power generation solutions provider Edina for Rs 493 crore ($76 million).
The deal will help EESL tap into the UK’s £6 billion ($8.4 billion ) market for energy efficiency products and services, it said in a press release. It will also help the company expand its offerings in the energy service contract model for combined heat and power technology.
EESL EnergyPro is a joint venture between Energy Efficiency Services, which holds an 80% stake, and the UK-based EnergyPro Assets Management Ltd, which owns 20%.
Manchester-headquartered Edina supplies, installs and maintains combined heat and power (CHP), gas and diesel power generation systems. It has annual revenue of £100 million.
Saurabh Kumar, managing director at EESL, said the acquisition is a strategic step in EESL’s continued efforts towards facilitating India’s energy security and sustainable energy supply.
Neelima Jain, chief executive officer at EESL EnergyPro, said that the CHP technology’s contribution to the UK energy portfolio is projected to double between 2015 and 2020 and that the UK is a promising market for EESL to grow its trigeneration capabilities.
Trigeneration, or combined cooling, heat and power (CCHP), is the production of electricity, heat and cooling from a single source.
Established in 1985, Edina has a manufacturing base at Lisburn in Northern Ireland. It also has a small operation in Australia.
Energy Efficiency Services is a joint venture of four state-run companies--NTPC Ltd, Power Finance Corporation, Rural Electrification Corporation and Power Grid Corporation. It was set up under the power ministry to facilitate implementation of energy efficiency projects.
The company aims to invest £150 million (Rs 1,343 crore) through EESL EnergyPro Assets into energy services business opportunities in the UK, European Union and North America between 2017 and 2019, according to the release.
KPMG, Bowline Capital Finance, Lux Nova and Verco Global advised on the transaction.