UK support services giant Carillion has agreed to buy Eaga – one of UK’s biggest suppliers of renewable and heating services, for £306 million.
Eaga implements low carbon emission projects with the government and local councils and has around 4,000 employees on its rolls. For Carillion, the low carbon market is a strategic growth area.
The board of Eaga has recommended Carillion’s offer of 120 pence-a-share offer to its shareholders in an all cash deal.
Carillon’s offer comes after two weeks of Eaga announcing £5 million loss for the first half of the year.
The government’s spending cut moves have hit Eaga hard, especially scrapping of the Warm Front Scheme, under which new heating and insulation was supposed to be installed in poorer households.
Carillion has more than £5 billion of annual revenues and employs around 47,000 people across UK and overseas. It serves the defence industry and its portfolio includes road and school projects.