Flogas Ireland has agreed to buy Naturgy Ireland from its Spanish parent company, just over five years after it last changed hands.
The value of the deal was not disclosed. Naturgy’s purchase of the Irish unit in 2016 was worth €32 million. It has since grown to a 16.8 per cent market share of the large industrial and commercial natural gas market here.
The acquisition, which must be approved by competition authorities in Ireland, will see DCC-owned Flogas expand its energy solutions and move into new markets.
The company sells electricity, natural gas and LPG across the island of Ireland and supplies more than 175,000 residential and SME business customers. The Naturgy acquisition will open up renewable electricity, natural gas, biogas and energy services to large energy users in Ireland and Britain.
It is considered a significant move for the company, which also acquired Just Energy’s Irish operation and Budget Energy in the North in recent years.
"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," said Paul Kenny, general manager, Flogas Energy. "It leaves us well positioned to lead the energy transition for our customers in Ireland."
If the deal is cleared by competition authorities, the agreement is expected to complete by the end of the year.
Established as Vayu
Naturgy Ireland was established in 2003 as Vayu before being bought in 2016 by the Spanish utility giant Gas Natural Fenosa (GNF) for an undisclosed sum. It changed its name to Naturgy in 2018.
Its customers include food and beverage producers, retailers, manufacturing and transport businesses.
Naturgy Ireland also supplies biomethane, renewable electricity, compressed natural gas (CNG) and a range of energy services that include Lighting-as-a-Service, Solar PV and Demand Response solutions.
Its parent company put the Irish unit up for sale in July.
"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," said Naturgy Ireland's Liam Faulkner. "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."
The Naturgy team will remain with the business to continue its development.