Origin Energy has acquired OC Energy, an Australian owned and run provider of in-building solutions to multi-tenanted developments.
The transaction consideration is $58 million, comprising an upfront payment of $33 million and deferred payments of $25 million.
Once completed, the acquisition will add 55,000 serviced hot water and embedded electricity network customers to Origin, primarily in New South Wales and Victoria.
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This is expected to grow by approximately 30,000 customers as contracted developments are completed and centralised energy services are installed.
Origin will incur capital expenditure associated with installing centralised energy services at contracted sites over the next two years.
Origin’s centralised energy services business provides serviced hot water, natural gas and electricity via embedded networks and other related services such as communal solar and battery systems to apartment blocks.
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Origin CEO Frank Calabria said, “The purchase of OC Energy will strengthen our existing presence in centralised energy services.
“A key part of our retail strategy is a focus on enhancing the customer experience. Our centralised energy services provide customers with convenient access to competitive energy rates through shared infrastructure.”
The transaction is subject to customary conditions, with completion targeted for this quarter.