Good Energy Group has unveiled its plans to acquire JPS Renewable Energy and its subsidiary, Trust Solar, in a strategic move valued at £13.75 million. This acquisition by the Wiltshire-based pioneer in renewable electricity and energy solutions is structured as a debt-free, cash-free transaction, featuring an upfront payment of £7 million and an additional £6.75 million in cash over the next two years, contingent on achieving specific performance milestones.
Nigel Pocklington, chief executive at Good Energy, said the deal marks an "exciting next step" in the firm's growth strategy. "Solar is experiencing a boom in the UK, and its role in decarbonising our energy system is absolutely crucial," he said.
The deal is expected to boost Good Energy's reach across the south of England as it looks to bolster its position as a leading supplier of solar, storage, and heat pump installations and services.
"The solar installation market was worth £1.9bn in 2023 with installations growing 38 per cent on already strong growth in 2022," Pocklington added. "This is pronounced in the South East, which is the region with the fastest rate of domestic installations in the country."
JPS Renewable Energy, headquartered in Maidstone, Kent, was established in 2011. It operates a solar and storage installation business with Trust, a dedicated distribution and procurement entity catering to various customers, including JPS. For the financial year ending April 30, 2023, JPS reported a revenue of £12.2 million and a pre-tax profit of £600,000. The company anticipates a revenue of £19.6 million and a pre-tax profit of £1.3 million for the following financial year.
The companies said JPS' management team will remain with the business following the acquisition.
"The JPS Group has carved a position as a leading installer across the region, serving as the solar specialist in the Southeast of the UK for larger homes and properties with more complex requirements," Pocklington said. "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.
"Having integrated our previous acquisitions, we are already marketing solar, storage, and heat pumps alongside supply, as well as everything you need for a greener home or business. Integrating JPS Group under the Good Energy brand will help to grow and consolidate Good Energy's market share, affirm us as solar and storage experts while also providing the opportunity for Good Energy to introduce its wider product suite to a new customer base."
This announcement comes less than a year after Good Energy's previous acquisition of Wessex ECOEnergy for up to £4 million, marking a significant stride towards its goal of becoming the leading provider of comprehensive solar solutions in the UK.Â
The initial purchase price was set at £2.5 million, with a potential increase to £4 million, depending on fulfilling specific criteria.