Centrica (LSE:CNA), the British Gas parent, has announced the completion of its acquisition of the Severn Combined‑Cycle Gas Turbine power station from the Calon Energy Group for an enterprise value of approximately £370 million, adding an 850MW flexible gas plant in South Wales and lifting Centrica Power's portfolio to 4GW.
The deal was struck on a cash‑free, debt‑free basis and funded entirely from Centrica's existing cash resources, with no share consideration, deferred payments or earnouts disclosed.
Commissioned in Q4 2010 as 2 x 425MW units, Severn is described as one of the UK's most efficient CCGTs and is expected to capture revenue from the capacity market, system services and wholesale power sales, with average capacity payments of £35 million per year until 2030 and annual EBITDA of £30–£60 million from 2027.
Using the midpoint of Centrica's EBITDA guidance (c.£45 million) implies an enterprise value/EBITDA multiple of roughly 8x, and the company expects a small net loss in 2026 due to transaction and integration costs with EPS accretion from the first full year post‑completion.
"Severn is a high‑quality asset that strengthens our ability to deliver the dependable power both our customers and our host countries rely upon," said Chris O'Shea.
