Alkane Energy snaps up Greenpark
Mansfield-based alternative energy company Alkane Energy has bought rival business Greenpark Energy for almost £6m.
The acquisition for the Chesterfield-based business has been financed by conditional arrangements to extend banking facilities to £9.5m – a £2m increase – provided by Lloyds TSB Bank; the issue of a £2m convertible loan underwritten by Henderson Global Investors; and the issue of £250,000 in Alkane ordinary shares.
The £5.7m deal includes nine Greenpark sites, 16 modular reciprocating engines and associated plant and equipment with an estimated book value of about £9m, and access to seven coal mine methane (CMM) gas exploitation licences.
Greenpark management estimates of unaudited revenue and EBITDA related to the CMM and power response business being acquired of £3.4m and £1.9m, for the year ended 31 December 2011.
Alkane chief executive Neil O'Brien said: "This acquisition is a significant step change in the scale of Alkane and adds significantly to our operating capacity and project pipeline.
"In addition, the acquisition will allow us to triple our capacity in power response for the National Grid."
Alkane is set to publish its 2011 full-year results on 7 March and expects revenue to have increased to about £9.5m, up from £6.6m in 2010.
