On the 24th of November, Brickability Group PLC, a leading construction materials distributor, announced its acquisition of HBS New Energies Ltd (HBS NE), a renewable energy installer. Brickability will acquire the trading names HBS New Energies and UPOWA. The consideration is being satisfied by an initial payment of 3.3 million GBR in addition to a deferred consideration of 2.2 million GBR payable in cash over the next three years, i.e., the performance period to achieve specific performance goals.
HBS NE and UPOWA are product brands of the Hampshire based HBS Group South, which focuses on providing renewable energy installation solutions and technology to meet the needs of the new-build market.
UPOWA supplies specialised products tailored for housing developers to ensure they achieve compliance with Part L, Part S and the Future Homes Standard most efficiently and affordably while strengthening developer supply chains to meet demand. To date, UPOWA has worked on over 15,000 properties nationwide and currently works with 16 of the top 25 UK developers including, Vistry Group, Taylor Wimpey and Barratt Developments.
Founded in 2008, HBS NE is a market-leading renewable energy expert specialising in the design, supply, installation and maintenance of solar photovoltaics, battery storage and electric vehicle charging technologies.
HBS NE has built a well-known track record in housebuilding and construction. Their success has largely been credited to their extensive cross-sector installation experience and technical expertise in the commercial, industrial and public sectors.
They have a reputation for offering cost-effective, easy-to-install, energy-saving and scalable technologies. This results in the achievement of the construction of sustainable, zero-carbon emission homes and buildings which Brickability Group PLC would greatly benefit from.
For over 36 years through local and national networks, Brickability Group PLC has been distributing construction materials, serving customers across the UK and Europe. Including its 41 locations across the UK that allow Brickability to have a strong distribution and supply network with over 500 employees. Across three divisions, Brickability Group PLC supplies bricks, roofing, timber, cladding, heating, flooring, doors and windows to meet demand from both contractors and housebuilders.
Although Brickability Group PLC and HBS Southern Group have thrived up to this present time, the recent push for net-zero carbon emissions has forced the companies to adapt to become more environmentally conscious. This need for change has been subsequently forced following a second consultation carried out by Future Home Standards from the 18th of January to the 13th of April.
This resulted in proposed changes to Part L (Conservation of Fuel and Power) and Part F (ventilation) of the Building Regulation. These changes provided a pathway to highly efficient non-domestic buildings with net-zero emissions. Some of the changes include the potential for mandatory electric vehicle charging points and solar Photovoltaics.
Brickability Group PLC and HBS NE must, therefore, make improvements shortly to achieve its carbon reduction targets and align with the government’s aim to deliver Zero Carbon homes by 2025.
Under the new ownership of Brickability Group PLC, HBS NW and UPOWA will be perfectly positioned to provide a single source of sustainable technology services and products to assist the decarbonising of UK homes. The acquisition will also give HBS NE the investment needed to expand its installation services outside of Hampshire.
Furthermore, the investment will allow UPOWA to enhance and increase its specialist range of sustainable technology products that have been tailored to meet the requirements of the construction and housebuilding industries.
The founder of HBS Group Southern, James Bull, stated that ‘the acquisition by Brickability Group is the perfect fit for both parties. With Brickability’s reputation, resources and strong customer base, we can accelerate the expansion of specialist services and UPOWA product offerings.
For Brickability, the transaction would enhance customer offerings as the construction industry turns net zero’. There will be no change to HBS NE’s management structure post-acquisition, allowing the investment to be carefully managed with great expertise so that HBS NE can maintain its momentum over its competitors.
By Joel Muir
Sector Head: Eric Hardy