A cash shell set up to buy up companies has agreed to acquire two South West businesses for £3.1m.
EARNZ (Energy Advisory Regeneration Net Zero), a new listed business, is taking over Bristol-based mechanical engineering firm Cosgrove & Drew and Plymouth heating installation and maintenance business South West Heating Services.
Cosgrove & Drew is an asset and energy support services company and its customers are predominantly in the South West, but also London and the South East. South West Heating Services provides heating installation and maintenance services, mainly for domestic insurance claims of national heating providers, but it also offers its services directly to some private clients.
The proposed acquisitions follow the admission and re-admission of new and existing ordinary shares to AIM.
EARNZ is also proposing to raise conditionally up to £4m via the issue of up to 53,333,333 new ordinary shares of 4 pence each in the capital of the company at a price of 7.5 pence per share by way of a placing. The net proceeds of the placing will be used to satisfy the cash consideration payable for the acquisitions and to provide working capital for the enlarged group.
Bob Holt, executive chair of EARNZ, said: “We are delighted to announce the proposed acquisitions of Cosgrove & Drew and South West Heating Services. These two businesses are well aligned to the group’s strategy to build a leading energy services business in a high-growth market that is aligned to the UK Government’s decarbonisation agenda.
“We intend to continue to grow the business and extend our presence in the sector, and to be the partner of choice for our customers through the provision of consistent, high quality, multi-dimensional offerings.”
The acquisitions, together and separately, constitute a reverse takeover. Approval will be sought from shareholders for that – and the placing – at a general meeting on 27 August 2024.