Energy risk specialist Encore has been bought by energy procurement and compliance firm McKinnon & Clarke for £6.25m.
The deal, announced yesterday, will see M&C’s turnover increase to more than £30m and establish it a major global player in energy, environmental usage and legislation in regulated and deregulated markets.
M&C’s chief executive Simon Northrop believes buying Encore is an important step in the creation of a ‘next generation’ energy consultancy.
He explained: “The challenges facing organisations when managing their energy consumption are complex and potentially detrimental to the success of their business. It isn’t a matter of buying cheaper; it’s about creating a robust energy risk management and procurement solution to protect not only the company’s bottom line, but also ensuring it is operating within the law.
“In order to add real value to clients, energy consultancies must be able to provide such expertise, combined with global reach. The acquisition of Encore is an important step in achieving this and is one of a number of acquisitions in the pipeline.”
By acquiring Encore, which has its operational hub in Budapest, M&C will become one of the world’s largest independent energy consultancies, with 3500 clients across 40 countries in Europe, Asia Pacific and the US.
M&C represents 150 of the world’s largest international businesses and is responsible for the purchasing of £4bn of energy. The company is headquartered in Scotland and employs 450 staff in 17 offices across 13 countries.
In January, M&C was sold to mid-market growth investor Lyceum Capital for £22m. It announced then its ambition was to increase turnover to £60m by 2013.
The Encore deal coincides with the unveiling of a new a name and brand identity for McKinnon & Clarke. From next week, the company will be known as M&C Energy Group.