Ovo Energy buys brand from billionaire founder in £150m deal

Ovo Energy has bought its brand from the company’s billionaire founder in a £150m deal.

The Bristol-based firm, which is the country’s fourth-biggest household energy supplier, has made the move as part of a wider reorganisation.

It was reported last Summer that Ovo Energy was close to hiring bankers to explore fundraising options which could include bringing in new investors or a sale.

The company has more than four million customers and is the title sponsor of Wembley Arena .

Founder Stephen Fitzpatrick is the firm’s majority shareholder while other investors include Mayfair Equity Partner, Mitsubishi Corporation and Morgan Stanley Investment Management.

The deal sees Fitzpatrick handed preference shares worth £150m in the company.

Last year, Mayfair and Morgan Stanley invested a further £200m in the company after having been shareholders since 2015, raising their stakes as the energy supplier revealed a slump in earnings.

Ovo Energy is expected to file its accounts for 2024 by the end of September this year.

For 2023 , the company reported a revenue of £8.7bn and a pre-tax profit of £1bn.

According to Sky News, which first reported the story, the deal includes Fitzpatrick relinquishing his role on Ovo Energy’s holding company board.

An Ovo spokesperson said: “Under the leadership of CEO David Buttress, Ovo has a simplified structure, an exceptional team, a strong financial base and a clear mission to deliver for customers.

“Ovo stands ready to accelerate its decarbonisation mission at scale.”