Flogas acquires Naturgy Ireland
Flogas acquires Naturgy Ireland
Energy company Flogas Ireland has agreed to acquire Naturgy Ireland from its Spanish parent company, Naturgy Energy Group SA. Naturgy Ireland is a market leading supplier of renewable electricity, natural gas, biogas and energy services to large energy users in Ireland, Northern Ireland and the UK. Its customers include food and beverage producers, major retailers, manufacturing and transport businesses.
The acquisition by Flogas is subject to approval by the CCPC (Competition and Consumer Protection Commission) in Ireland. Once approved, the agreement is expected to complete by the end of the year.
The announcement is a significant move for Flogas, which acquired Just Energy’s Irish operation in 2019 and Budget Energy in Northern Ireland in 2020. Currently, Flogas sells electricity, natural gas and LPG across the island of Ireland and supplies over 175,000 residential and primarily SME business customers. The acquisition of Naturgy Ireland will expand the company’s reach into the large Irish electricity and gas markets in Ireland, where it doesn’t compete at present, and represents an important step in its strategy to expand its energy solutions.
Paul Kenny, general manager, Flogas Energy said, “The acquisition of Naturgy Ireland is complementary to our existing business. With the strong pipeline of energy services and renewables that Naturgy brings to the table, the agreement will support the further development of our portfolio of sustainable and renewable offerings for the large energy supply sector. It leaves us well-positioned to lead the energy transition for our customers in Ireland.”
Since the original Irish company was purchased in 2016 by Naturgy Energy Group SA, Naturgy Ireland has grown to approximately a 16.8% market share of the large industrial and commercial natural gas market here. It also supplies biomethane, renewable electricity, compressed natural gas (CNG) and more recently, a range of energy services that include Lighting-as-a-Service, Solar PV and Demand Response solutions.
Customers will be contacted directly to advise of the agreement with Flogas and to confirm there will be no changes to their existing energy management contracts or account management services.
Welcoming the announcement, Liam Faulkner, of Naturgy Ireland, said: “This deal marks a very exciting time for us as we continue to develop products and services to support our customers with their energy sustainability goals.
“We are proud of the deep relationships we have built with our customers, and they can be assured they can continue to expect the same level of service which we pride ourselves on and which they expect.”
“We have been very impressed with Naturgy’s management in Dublin, so we are delighted that the team has agreed to remain with the business to continue its exciting development in association with Flogas,” continued Kenny.