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A UK supplier of support services to the energy, mineral and waste sectors has bolstered its fuel portfolio with the acquisition of a solid fuel manufacturer in South Wales.

Coal4Energy, a 50:50 joint venture owned by Hargreaves Services plc and UK Coal plc, purchased an 85 per cent stake in Maxibrite, a smokeless fuel producer serving domestic markets in the UK, Ireland and France. The all-cash transaction was valued at £4.7 million. The remaining 15 per cent interest is being retained by a shareholder of the former family-owned business.

Hargreaves CEO Gordon Banham says the acquisition will strengthen Coal4Energy’s market position and build on the progress that has been made since the joint-venture was formed less than two years ago. He adds: “Maxibrite will add new customers and products to Coal4Energy'’ portfolio and Coal4Energy will extend Maxibrite’s customer base and geographic reach.”

According to unaudited results published at the end of March this year, Maxibrite generated a net profit of £750,000 on revenues of £7.5 million and cited net assets worth £2.5 million.

Hargreaves is the largest supplier of coal to the UK domestic and industrial markets.

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