Drax sells U.K. wood pellet distribution company
October 26, 2017
By Drax Group
Oct. 26, 2017 - Drax has agreed the sale of Billington Bioenergy – a distributor of wood pellets in the U.K. heating market – to Aggregated Micro Power Holdings, an AIM listed energy company specializing in the sale of wood fuels and the development of distributed energy assets, including biomass boilers and battery storage.
Consideration for the transaction is £2 million, comprised of £1.6 million of shares in AMPH and £400,000 of cash.
The sale of BBE is aligned with Drax’s retail strategy, focused on the I&C and SME energy markets. However, through its shareholding in AMPH, Drax will retain an interest in the UK heating market, whilst gaining exposure to the development of small-scale distributed energy assets.
Dorothy Thompson, Chief Executive of Drax Group, commented, “We are pleased with the sale of BBE and our investment in AMPH. With their leadership in the U.K. wood pellet heating market, we believe they are the right partner to take forward and grow BBE, whilst supporting the UK’s transition to a low carbon economy. We look forward to working with AMPH.”
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