Dubai's Alec joins Engie to acquire stake in energy firm Smart4Power
Dubai-based Smart4Power provides energy savings performance contracts across the region
Engie has joined forces with contracting giant Alec by investing a “significant stake” in Dubai-based independent energy services company (Esco) Smart4Power.
According to a statement, the French global energy and services group acquired the stake under an agreement signed on 25 June 2018, with Smart4Power’s new capital structure now featuring Engie and Alec as its major shareholders.
Based in Dubai, Smart4Power was one of the first companies accredited as an Esco in the market, and provides energy savings performance contracts for regional buildings in the public and private sectors.
The size of Engie’s investment was not disclosed.
“Smart4Power will benefit from Engie’s global energy services expertise as well as its strategic presence in the region, and from Alec’s world class project execution capabilities,” the statement read.
Speaking on the news, Hercu Viljoen, managing director of the related businesses for Alec, said: “Collaboration in our industry is becoming increasingly important. We want to combine our expertise and skills with like-minded and leading companies in our industry to find win-win products and supply quicker and more powerful solutions to our clients.”
Sébastien Arbola, chief executive officer of Engie Middle East, South and Central Asia, and Turkey, added: “Through this acquisition, Engie will play a leading role in the Middle East in the field of building energy efficiency services.”
Smart4Power said that further to the transaction, the company “will bring attractive financing offerings to client projects removing the need for capex investments and will expand regionally”.
Its co-managing director, Jesús Gutiérrez, said Engie’s and Alec’s investment in the company shows “the increasing importance of the energy efficiency market in the region”.