Isra-Mart srl : British Gas bolsters energy efficiency push with £30m purchase of heating firm

www.isra-mart.com

Isra-Mart news:

British Gas has continued its push into the fast-expanding energy services market by aquiring a central heating company for £30m cash.

Centrica, the parent company of British Gas, today confirmed it has acquired PH Jones Group, a central heating repair company, in a deal that includes PH Jones' social housing business but not the company's utility services operations.

British Gas will take on around 850 PH Jones employees, of whom about 560 work in a social housing division that provides central heating services and repairs for around 250,000 properties through 42 contracts.

The division also installs more than 8,000 central heating installations annually through 28 contracts within the social housing sector.

Betsy Bassis, managing director of British Gas Community Energy, said the deal marks an important step in the company's plan to grow its social housing and energy efficiency offerings.

"Social housing is a strategically important market for British Gas. It not only represents 20 per cent of Britain's housing stock, but it is also an early adopter of energy efficiency and renewable technologies," she said.

"The acquisition of PH Jones significantly accelerates our growth strategy in social housing. PH Jones is a successful, profitable company in this sector and combining its strengths with those of British Gas will deliver important benefits for our customers."

Today's deal builds on the announcement in September 2010 of British Gas' strategic partnership with Mears to jointly bid on repair and maintenance contracts in the social housing sector.

Overall, the sector is forecast to spend £3.5bn a year on energy services by 2012.

The deal is also part of a wider trend amongst the "Big Six" energy companies that has seen utilities purchase energy services firms that specialise in efficiency and renewable energy technologies as part of efforts to diversify their revenue streams.