UK-based Aggregated Micro Power Holdings plc (AMPH), a distributed energy company specialising in the sale of wood fuels and the development of distributed energy projects including biomass heat and battery storage has announced that it has reached an agreement with UK power major Drax Group plc to acquire 100 percent of wood pellets distributor Billington Bioenergy Ltd (BBE) from Drax Smart Supply HoldCo Ltd.
Announced October 25, the GBP 2 million (≈ EUR 2.4 million) transaction is comprised of GBP 1.6 million (≈ EUR 1.8 million) of shares in AMPH and the balance in cash. According to a statement from Drax, the sale of BBE is aligned with Drax’s retail strategy, focused on the industrial and commercial (I&C) and small- and medium-sized enterprise (SME) energy markets.
Drax originally acquired BBE in March 2015. Through its shareholding in AMPH, Drax will retain an interest in the UK heating market, whilst gaining exposure to the development of small-scale distributed energy assets.
We are pleased with the sale of BBE and our investment in AMPH. With their leadership in the UK wood pellet heating market, we believe they are the right partner to take forward and grow BBE, whilst supporting the UK’s transition to a low carbon economy, said Dorothy Thompson, Chief Executive of Drax Group.
BBE supplies around 40 000 tonnes of premium wood pellets to the UK heating market annually. With four depots, a head office in Liverpool, a fleet of 16 vehicles and 34 staff the company services over 1 500 customers.
We are delighted that Drax has become a long-term investor in AMP and we look forward to working with Drax on a range of development projects which should help to expand our assets under management in the distributed energy space. Billingtons has built a strong and well-regarded business in the wood pellet market in England over the last ten years and is an excellent fit with Forest Fuels, said Richard Burrell, Chief Executive of Aggregated Micro Power Holdings plc.
