An energy efficiency specialist that targets the residential market has completed its first acquisition since it joined the Official List of the London Stock Exchange.

An energy efficiency specialist that targets the residential market has completed its first acquisition since it joined the Official List of the London Stock Exchange.

eaga plc, which was valued at £453 million when its shares started trading on the market earlier this month, has bought heating installation and repair company RG Francis (RGF).

The deal could be worth as much as £11.2 million if agreed financial targets are achieved in the 12 months to October this year. On completion, £9.6 million was paid with up to £1.6 million deferred.

The company joined the market to fund acquisitions to expand its operations in the social housing sector. This first deal adds operations in London and the Southeast to its business.

eaga will strengthen RGF’s business by introducing renewable energy options such as solar heating to its offering. The acquired company will now trade as part of the eaga’s installation services business.

eaga, which has operations in the Midlands, the Northeast and Northern Ireland, provides products and services to meet the environmental, social and energy efficiency objectives of Government and the private sector.

The group, which was established in Newcastle 17 years ago, operates across the UK, Ireland, India and Canada employing more than 3,000 people.

Essex-based RGF installs some 2,000 heating systems each year and manages more than 56,000 annual service contracts for the social housing market. Last year it generated a £13 million turnover.

Its clients include local authorities, housing associations and registered social landlords such as Circle Anglia, Chelmar Housing Partnership, Ipswich Council and Suffolk Heritage Housing Association.