Equans, a world leader in the energy and services sectors and a subsidiary of the Bouygues group, today announces the signing of an agreement, on 15 September 2023, for the sale of its district heating and cooling networks in the UK for an aggregate enterprise value of around £260 million[1].
The purchaser is a consortium formed by Swiss Life Asset Managers and Schroders Greencoat LLP.
The business to be sold, often known as Equans Urban Energy, includes East London Energy Limited and Equans DE Holding Company Limited. Humber Energy will also be included in the transaction.
This sale forms part of Equans' strategic plan, disclosed on 23 February 2023 at its Capital Markets Day, which includes the sale of asset-based activities. It will have no impact on Equans' revenue and COPA[2] trajectory as presented at the Capital Markets Day.
In the UK, Equans delivers annual revenues of approximately £2.5 billion and is a key partner for the decarbonisation of industries and cities. In this country, Equans is fully focused on its core activities, supporting businesses, communities and the public sector to deliver their decarbonisation objectives through the provision of sustainable facilities management and regeneration, and cutting-edge energy and digital services.
Gabriele Damiani, Head of Core Infrastructure at Swiss Life Asset Managers, and Minal Patel, Partner at Schroders Greencoat, said: “we remain committed to Urban Energy’s net zero ambitions and plan to make investments in the coming years to support the continued decarbonisation and growth of both existing and new heat networks. This will serve the UK’s wider Net Zero objectives as well as the UK Government’s Levelling Up agenda, by supporting local employment and investment in local critical infrastructure.”
Completion of the transaction is expected in the last quarter of 2023, subject to relevant approvals.
[1] Equating to around £270m including IFRS 16 liabilities
[2] Current Operating Profit from Activities
