ENGIE Announces Acquisition of Keepmoat's Regeneration Business
ENGIE, the leading energy and services provider, announces that it has signed an agreement to acquire the regeneration business of Keepmoat for £330 million from TDR and Sun Capital. Keepmoat is the UK's leading provider of regeneration services specialising in the design, refurbishment and upgrade of buildings and places, helping to transform communities and strengthen local economies. This transaction will enable ENGIE to offer a complementary range of services to local governments, cities and businesses across the UK and strengthen its existing network of local authority partnerships.
The Keepmoat regeneration business has an annual turnover of approximately £800 million and employs 2,500 staff across the UK. Keepmoat's expertise in delivering building refurbishment and energy efficiency measures is closely aligned with ENGIE's focus in the UK on energy and facilities management. The combined capabilities will enable the business to support local government in meeting challenging budgetary and emissions targets and addressing the wider needs of their communities. The Keepmoat regeneration business has built strong partnerships over the last 30 years and has long-term relationships with more than 170 local councils and many of the largest housing associations. The business currently has a £1 billion order book and a £9 billion pipeline of regeneration opportunities across the UK.
Wilfrid Petrie, CEO of ENGIE in the UK & Ireland, said:
"ENGIE aims to be the number one partner for cities and places in the UK and with the Keepmoat regeneration business we are extending and deepening our relationships with local authorities right across the country. By combining our energy expertise with an expanded services capability we can make a bigger impact, as we help to improve the lives of the communities we serve. Today, buildings account for 30% of UK carbon emissions and our investment in Keepmoat underlines our long-term commitment to the UK as it transitions to a lower carbon economy. This transaction will also support our growth ambitions for decentralised energy networks and our home energy business as the regeneration activities will bring us closer to the end customer."
Dave Sheridan, CEO of Keepmoat, commented: "The Keepmoat regeneration business has exciting prospects as part of ENGIE. It is very clear that ENGIE shares our belief that by working in partnership with local authorities, registered providers and the private sector we can help cities and communities improve the places where people live. Adding Keepmoat's market leading regeneration business to ENGIE's capabilities opens up new opportunities for both our customers and employees. We look forward to working together to provide our partners with broader expertise and innovative solutions to meet the future needs of communities across the UK."
Alongside the repair and refurbishment of homes and buildings, the regeneration business has extensive capabilities in creating zero carbon new homes, retrofitting high-rise residential accommodation and supporting the cost reduction and energy efficiency targets of community regeneration projects, such as insulation and heating solutions to on-site generation and energy consultation services.
Completion of the transaction is conditional on anti-trust clearance and is expected to take place in a few months. Dave Sheridan, CEO of Keepmoat, will join ENGIE at completion together with the entire regeneration division's infrastructure and employees.
The total consideration of £330 million represents ENGIE's largest UK acquisition in five years and signals the Group's ongoing commitment to investment in the UK. http://www.business.engie.co.uk