French utility ENGIE has signed an agreement to acquire the regeneration business of UK housebuilder Keepmoat in a move designed to position itself as a key provider of regeneration services to local authorities and businesses.
The £330 million was agreed last week to give ENGIE a foothold in the UK market and support local authorities in meeting budgetary and emissions targets, while addressing the wider needs of their communities.
Isabelle Kocher, chief executive of ENGIE, said: “The acquisition of Keepmoat is closely aligned with ENGIE’s strategy and is a major step in our development in the United Kingdom.
“It will help the group to accelerate its growth in customers solutions, one of its strategic priorities, and to expand our offers to cities, complementing the energy and facility management solutions that we already provide in the country.
“Today, buildings account for approximately 30% of UK carbon emissions and we are convinced that with the addition of Keepmoat’s renovation expertise, we will be better able to support local authorities and cities in their transition to a lower carbon future.”
Under Keepmoat, the business has an annual turnover of approximately £800 million and employs 2,500 staff across the UK.
Alongside the repair and refurbishment of homes and buildings, the regeneration business has experience 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.
It is currently thought to have a £1 billion order book and a £9 billion pipeline of regeneration opportunities across the UK.
Completion of the transaction is conditional on anti-trust clearance and is expected to take place in a few months. Dave Sheridan, chief executive of Keepmoat, will join ENGIE at completion together with the entire regeneration division’s infrastructure and employees.
“The 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 and registered providers we can help cities and communities improve the places where people live,” he commented.