Wesfarmers sells enGen for $101m

Queensland-based Energy Developments has targeted Western Australia to satisfy its growth ambitions, by acquiring the Wesfarmers-owned remote area energy provider, enGen, in a deal worth $101 million.

Energy Developments said in a statement it would fund the acquisition from its existing cash and debt facilities, which were recently re-financed.

The company said it expected the remote energy power generation market to grow rapidly over the long-term, driven by expanding resources activity, particularly in Western Australia.

EnGen owns and operates around 98 megawatts of power generation at 20 mine sites and remote communities, 19 of which are located in WA.

Energy Developments managing director Greg Pritchard said the acquisition was an excellent financial and strategic fit.

He said the company intended to utilise enGen's Perth base to focus on further growth opportunities from resources and infrastructure-related developments in WA.

"The acquisition of enGen will add to the substantial embedded value in the company's existing RAE portfolio and signals a substantial new stage of growth for the company," Mr Pritchard said.