React snaps up UK bio assets
Deal with GG Eco Solutions for two heating plants, business operations
Infrastructure developer and operator React Energy is buying selected biomass assets and business operations from GG Eco Solutions in a £2.3m deal.
The agreement, which was reached through new subsidiary Grass Door Limited, was described as a milestone in its strategy “to act as a consolidator of the fragmented UK biomass energy infrastructure market”.
GGES, which was formed through a Swedish and UK partnership, has been operating in the UK market since 2009.
The company is the developer, part-owner and operator of two existing biomass plants and has five projects in development. Facilities typically range from 150KW to 1MW thermal capacity and use wood as fuel.
Under the agreement, React will acquire the operational Kimbolton School heating plant (pictured) in Cambridgeshire and the Old Buckenham Hall School heating plant, which is in commissioning.
The company will also take GGES’s investment in GG Eco Energy Limited, an outfit 30%-owned by GGES and 70%-owned by Equitix.
An additional maximum deferred consideration of £1.7m “may become payable subject to certain performance criteria being achieved”, React said.
Key members of the GGES senior management team will remain with the business to boost the depth and experience of the overall team, the company added.
React chief executive Gerry Madden said: “The board is delighted to be acquiring the assets of a company with a strong pipeline in the mid-market biomass sector. We believe that this now positions the group as the leader in the mid-market biomass power generation sector in the UK.”
GGES has also developed the Culford School heating plant in Suffolk, which has been operational for almost two years.