Business
Sale of Contracting Division
Sale of Contracting Division.
About this update from Sse Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3763U\n SSE PLC\n 01 April 2021\n \n \n \n \n SSE plc\n \n \n Sale of Contracting Division \n \n \n 1st APRIL 2021\n \n \n \n \n \n SSE plc has entered into an agreement to sell its \n Contracting business to the Aurelius Group at an enterprise value of £27.5m. The consideration comprises:\n \n \n \n \n \n · \n An upfront consideration \n of £17.5m, which will be \n adjusted for working capital, separation costs and debt like items;\n \n \n \n \n \n · \n A £5m loan note to be issued by Aurelius on completion which will be repayable in 2026, unless prepaid earlier, with a fixed PIK interest rate of 6% payable; and\n \n \n \n \n \n · \n Up to £5m in an earn out based upon Financial Year 2021/22 EBITDA performance\n \n \n \n \n \n The planned disposal is part of SSE's strategy to focus on its core networks and renewables businesses, supported by businesses clearly complementary to that core. It \n is also designed to give Contracting a strong platform for future success outwith SSE. \n \n \n \n \n \n SSE Contracting is one of the biggest contracting businesses in the UK providing mechanical, electrical and street lighting services. It is \n the largest street light contractor in the UK and its HV (high voltage) engineers install energy infrastructure for clients including schools, hospitals and substations. Its rail division delivers mechanical, electrical and civils activity for the likes of Transport for London and Network Rail.\n \n \n \n \n \n The sale process is expected to be completed by the end of June 2021, when around 1,900 Contracting employees will work under the new ownership.\n \n \n \n \n \n Gregor Alexander, SSE's Finance Director, said:\n\"Aurelius has a proven record of actively supporting the companies they work with, so this change of ownership should provide a good home for the Contracting business. It leaves the SSE group more focused around its renewables and networks core, allowing the Contracting business to thrive in an environment better suited to its ambitions.\"\n \n \n \n \n \n Tristan Nagler, UK Managing Director of Aurelius, said: \n \n \n \n \"\n \n As other sellers before, SSE recognised Aurelius to be the partner of choice to execute the divestment of a promising business unit, establishing SSE Contracting as...