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Centrica Plc, which is currently known as the largest energy supplier and distributor for residential customers in the U.K. and is an integrated energy company that operates in four segments (British Gas, Centrica Energy, Centrica Storage and Direct Energy), made an official announcement that it has reached an agreement for the acquisition of Bord Gais Energy in a deal that is estimated to 1.1 billion euros (1.5 billion dollars).

According to the companys statement, the deal is expected to be finalized during the first half of 2014. Centrica also expects the purchase to benefit its earnings in the first full year of possession. In December last year the consortium headed by Centrica Plc was announced by the Irish government as the most preferred bidder for BGEs supply business. This makes the deal the biggest privatization in the region.

Currently, the supply business of Bord Gais Energy is considered as the biggest dual fuel supplier on the territory of Ireland. Its household gas and electricity accounts amount to approximately 650 000, and the business accounts serviced by Bord Gais Energys supply unit are considered to be about 30 000. Centrica Plc explained in its announcement that the purchase of the Irish power company will be carried out in cooperation with two private-equity firms – Brookfield Renewable Energy Partners L.P. and iCON Infrastructure Partners II, L.P.

According to the companys statement, Centrica will take over the gas and electricity supply business of Bord Gais Energy in Ireland as well as the gas-fired power station in Whitegate, which is estimated to 210 million euros on an enterprise basis.

On the other hand, Ireland is considered to be planning to use most of the profit generated after the closing of the deal to pay down some of its debts.

Centrica Plc rose by 0.91% by 9:03 GMT in London to 334.53 pence, marking a one-year change of -7.62%. The company is valued at 16.78 billion pounds. According to the Financial Times, the 19 analysts offering 12-month price targets for Centrica Plc have a median target of 325.00 pence, with a high estimate of 440.00 pence and a low estimate of 280.00 pence. The median estimate represents a -1.96% decrease from the last price of 331.50p.

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