Scottish and Southern Acquires 300,000 Electricity and Gas Customers from Atlantic Electric & Gas

Scottish and Southern, the UK's fourth-largest electricity and gas supplier, has made a lightning purchase of over 300,000 customers from Atlantic Electric & Gas, a struggling energy supplier that fell into receivership. The £90.7m acquisition, made within 24 hours of Atlantic's collapse, cements Scottish and Southern's position as the country's largest energy supplier. The new customers will be offered the same terms and conditions they enjoyed with Atlantic, and the company has assured the industry regulator, Ofgem, of a smooth transition.

Key Takeaways:

• Scottish and Southern has acquired over 300,000 electricity and gas customers from Atlantic Electric & Gas, its largest acquisition yet.
• The deal was made within 24 hours of Atlantic's receivership and is valued at £90.7m.
• The acquisition cements Scottish and Southern's position as the UK's fourth-largest electricity and gas supplier, with 5.5m customers.
• The new customers will be offered the same terms and conditions they enjoyed with Atlantic, with no changes expected in the near future.
• Scottish and Southern has acquired debts of £80m owed to Atlantic, which could soften the impact of the deal on its balance sheet.
• The company's chief executive, Ian Marchant, believes the acquisition will add £5m to the group's pre-tax profit for 2005-06.
• Scottish and Southern has increased its customer base by 1m since 2001, with this latest acquisition representing "good value and complements our success in growing customer numbers organically."

Statistics:

• 300,000: Number of customers acquired from Atlantic Electric & Gas
• £90.7m: Value of the acquisition
• 5.5m: Number of customers owned by Scottish and Southern
• £500m: Revenue generated by Scottish and Southern in the past year
• £80m: Debts acquired by Scottish and Southern from Atlantic Electric & Gas
• 2001: Year in which Scottish and Southern increased its customer base by 1m

Sources:

• Scottish and Southern press release
• Interview with Ian Marchant, Scottish and Southern chief executive
• Ofgem statement on Atlantic Electric & Gas receivership
• UBS analyst report
• "British Gas to Cut 1,800 Jobs" by The Telegraph, no author or date mentioned