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The Markets
by Proactive
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Investments and investor services

Origin Energy acquires OC Energy to grow centralised energy services business

The total transaction cost is $58 million comprising an upfront payment of $33 million with deferred payments of $25 million.

Origin Energy Ltd (ASX:ORG) has entered into an agreement to acquire OC Energy, further expanding its centralised energy services business.

Once completed the acquisition will add 55,000 serviced hot water and embedded electricity network customers to Origin, primarily in New South Wales and Victoria.

Customer numbers are expected to grow by 30,000 once contracted developments are completed and centralised energy services are installed.

Strengthen presence in energy services

Origin CEO Frank Calabria said: “The purchase of OC Energy will strengthen our existing presence in centralised energy services.

“A key part of our retail strategy is a focus on enhancing the customer experience and our centralised energy services provide customers with convenient access to competitive energy rates through shared infrastructure.”

The transaction is subject to customary conditions, with completion targeted for this quarter.

- Jessica Cummins

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