British Gas' Electrical and Dyno Services business, which includes Dyno-Rod, is already the market leader in domestic drain-cleaning service. The acquisition of Hertfordshire-based JK Environmental Services for £7m is designed to strengthen its position in the industrial and commercial sector, with a particular focus on water and sewerage companies.
The £4m purchase of ECL Contracts, a specialist in external-wall insulation, will enable British Gas to diversify from loft and cavity-wall insulation into solid-wall insulation. There are around nine million homes in the UK of solid wall construction, British Gas says.
JK Environmental will become part of Dyno-Rod but will continue to operate under its own name and continue to deliver existing contracts. All 102 employees, who operate from depots across the Midlands and southern England, are joining Electrical & Dyno Services.
Nina Bhatia, managing director, Electrical & Dyno Services said: "The acquisition of JK Environmental Services gives Dyno-Rod a significant presence in the industrial and commercial sector, complementing its market-leading position in the residential sector and providing a strong platform for future growth. Our focus will be on expanding our activity with the UK's water and sewerage companies. We will also actively consider how JK Environmental Services' complementary skills can add value to British Gas' commercial and local authority customers and create opportunities to win further business."
ECL Contracts is based in Rugby and employs 31 staff. British Gas’ insulation business already has 1,100 employees across the country and it aims to be the leading supplier of domestic insulation. Demand for home insulation is forecast to rise significantly in the next five years. Currently, £1 in every £4 spent on domestic energy is wasted because of poor insulation, British Gas says. Spending on home insulation is predicted to rise from around £600m a year in 2010 to £1.4bn in 2015. Government programmes such as the Green Deal are also expected to make energy efficiency more attractive to British households.
Jon Kimber, managing director of British Gas New Energy, said: "This acquisition is part of the continuing success story of the British Gas insulation business. At British Gas, we are building the country's leading insulation business, reducing household carbon emissions, and helping our customers lower their energy bills.
Malcolm Smith, managing director of ECL Contracts, said: "This is great news for ECL Contracts and a reflection of the hard work and skill of all our people. I joined ECL Contracts 14 years ago and I've seen the company go from strength to strength. We are now starting a new chapter and are thrilled at being part of one of Britain's most successful companies."