SSE sells Contracting business to Aurelius for GBP27.5 million

(Alliance News) - SSE PLC on Thursday said it has sold its Contracting business to the ...

Alliance News 1 April, 2021 | 3:54PM
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(Alliance News) - SSE PLC on Thursday said it has sold its Contracting business to the Germany-based asset management firm Aurelius Group at an enterprise value of GBP27.5 million.

The SSE Contracting business consists of two unite: SSE Contracting Ltd and Airtricity Utility Solutions Ltd, and provides mechanical, electrical and street lighting services.

The sale is part of the Perth, Scotland-based gas & electricity company's strategy to focus its core networks and renewables businesses.

SSE will make an upfront consideration of GBP17.5 million, adjusted for working capital and debt like items, and will issue a GBP5 million loan note to be issued by Aurelius on completion which will be repayable in 2026, as well as up to GBP5 million in an earn out based on performance in the 2022 financial year.

The sale is expected to be completed by the end of June.

"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," said Finance Director Gregor Alexander.

Shares in SSE closed 0.4% higher at 1,461.00 pence on Thursday in London.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Security Name Price Change (%) Morningstar
Rating
SSE PLC 1,655.00 GBX 0.27

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