Energy Action Limited (EAX) announced that it has entered into a Sale and Purchase Agreement to acquire 100% of leading energy procurement and management business Ward Consulting Services for an estimated $4.15 million. The acquisition will be funded through existing cash and the issue of EAX shares, consisting of an initial cash payment and the issue of EAX shares to the vendor.
Ward Consulting Services is a long established, highly successful and profitable business, with a focus on sustainability reporting and efficiency solutions. It is a highly complementary addition to Energy Action and in the 12 month period ending 31 December 2011 Ward Consulting Services generated net profit after tax of $638,000. The acquisition is earnings accretive for EAX.
Established in New South Wales in 1999, Ward Consulting Services is a highly-regarded and recognised firm that provides energy procurement and management services to a broad range of blue-chip clients in the property, food and beverage and finance sectors. Clients include some of Australia’s leading property owners and commercial property firms. The business has a number of long term contracts that generate stable and predictable revenue streams.
EAX’s Managing Director Valerie Duncan said: “This is a excellent transaction for EAX and is inline with our previously stated goal of acquiring one profitable and complementary business within 12 months of our October 2011 IPO. Ward Consulting Services is a highly profitable business, the brand is well recognised, and it adds considerable value to Energy Action. A real advantage is that Jenny Ward and her team will continue to operate the business on an ongoing basis.