Keepmoat sells regeneration business for £330m

Engie announced the acquisition this morning. It will see it take over the business, which is one of the major providers of repairs services to councils and housing associations in the UK.

All 2,500 employees in Keepmoat’s regeneration business will move over to join Engie, along with Keepmoat’s current chief executive, Dave Sheridan.

Mr Sheridan told Inside Housing: “It will still be the same team, the same people. But what clients will see is a business with a stronger balance sheet.

“We are still focused on place, of which energy services will be a key part. It means we will have more strings to our bow to look at how we can help local authorities really transform these areas.”

Keepmoat’s regeneration business has a turnover of £800m and major contracts with more than 170 local authorities and many large housing associations.

Isabelle Kocher, chief executive of Engie, said the acquisition of Keepmoat was a “major step in our development in the United Kingdom”.

“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,” she added.

In the UK, Engie already employs 17,000 people and is a major provider of property services and energy management, including district heating, to local authorities and businesses.

Completion of the transaction is conditional on approval regarding competition law, and is expected to take place in a few months.

Keepmoat Homes, the new build division of the group, will not be sold and will continue to be owned by investors TDR and Sun Capital, which acquired the business in 2014. It aims to build 3,500 homes in the next financial year.