Rame Energy Picks Up Beco
Rame Energy has announced the acquisition of the entire issued share capital of Beco, one of the UK's longest established designers and installers of solar energy systems for a total consideration of £150,000. The Acquisition complements and strengthens Rame's established international energy consultancy business, which supplies power generation solutions to the industrial, mining and utility sectors.
Based locally to Rame's Plymouth head office in Devon, Beco specialises in photovoltaic (PV) solar energy systems for domestic, commercial, marine and off-grid uses. In addition Beco installs wind turbines and is a distributer for Kingspan wind turbines as well as manufacturing its own range of solar charge controllers and specialist batteries.
Beco reported revenues of £877,344 and a loss of £17,208 for the period from 21 June 2012 to 30 June 2013. In the nine months to 31 March 2014, Beco had unaudited revenue of approximately £1.32 million and was profitable. It has a current order book valued at approximately £1.30 million to 30 September 2014. On completion, which is expected to be 1 July 2014, Beco will have shareholder loans totalling £239,255.56 ("Vendor Loans"). The Acquisition is expected to be earnings enhancing for the six months ended 31 December 2014.
Consideration is to be satisfied by the issue of 989,283 new ordinary shares ("Consideration Shares") in the Company as calculated by reference to the average closing share price on the 20 trading days preceding the Acquisition. Application for the Consideration Shares to be admitted to trading on AIM has been made and dealings are expected to commence on 1 July 2014. The Consideration Shares will represent approximately 1 per cent. of the enlarged share capital of the Company. In addition, on completion Rame will make a loan to Beco of £100,000 to enable the partial redemption of a proportion of the Vendor Loans. The remaining Vendor Loans shall be repaid out of a portion of profits generated by Beco over two years.
Tim Adams, Rame CEO, said, "Having collaborated with Beco on a number of solar opportunities over the past five years, we are delighted to have agreed the Acquisition and to welcome its multi-skilled team into the Group. Beco's proven expertise in both grid connected and off-grid solar power projects, and the synergies between our groups, will allow Rame to substantially expand our solar power activities worldwide, and also strengthen our engineering division's capability to deliver cost effective and reliable power solutions to blue chip customers around the world. As well as the potential to increase turnover and profits at Rame's engineering division, the acquisition of Beco will support the opportunity we have identified to develop solar power projects as an Independent Power Producer ("IPP"), similar to the wind power projects we are constructing in Chile, where the first two of a multi-project 300MW three year programme are due to come on stream later this year."
Nigel Brunton-Reed, Beco CEO, commented, "We are very pleased to be joining forces with Rame and believe that the Acquisition will immediately allow Beco to significantly broaden its foothold in the UK solar market. Our expertise in implementing challenging projects abroad, such as most recently in the Qatar, will also serve Rame's solar business in Chile and around the world. We look forward to working together and growing our business under the Rame umbrella."
