LONDON, UK: Good Energy Group PLC (AIM: GOOD), a renewable electricity and energy services provider, has signed a binding agreement for the acquisition of JPS Renewable Energy Ltd (JPS), a solar and storage installation and distribution business, and its subsidiary Trust Solar Wholesale Limited (Trust), a distribution and procurement business.

The acquisition is on a debt-free, cash-free basis for an initial consideration of £7.0 million, with further deferred consideration of up to £6.75 million, payable in cash over a two-year period, subject to certain performance conditions.

The initial consideration will be satisfied by a payment of £3.7 million in cash and the allotment of 1,322,000 new ordinary shares of Good Energy. A proportion of the shares have been placed on behalf of JPS Group’s selling shareholders, raising proceeds of approximately £2.1 million for them. The remaining shares will be retained by the sellers and will be subject to a twelve-month lock-up period and orderly marketing arrangements.

The acquisition strengthens Good Energy’s service offering and accelerates its energy services growth strategy in targeting higher margin, growth markets with lower working capital requirements. Good Energy is targeting an equal weighting of energy services and energy supply earnings by 2025.

JPS Group, based in Maidstone, Kent, was founded in 2011 and comprises of a leading solar and storage installer and its wholly owned subsidiary Trust, a standalone distribution and procurement business whose customers include JPS. For the financial year ended 30 April 2023, JPS Group reported revenue of £12.2 million and profit before tax of £0.6 million. For the financial year ending 30 April 2024, the JPS Group is on track to deliver revenue of £19.6 million and profit before tax of £1.3 million.

JPS’s highly experienced management team has committed to remain with the business.