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Engie sells construction and services arm to Bouygues in £6bn deal
Utility and construction company Engie has agreed to sell its construction and services business, Equans, to giant French conglomerate Bouygues in a deal worth €7.1bn (£6.1bn).
In a statement, Engie said it expects the sale of Equans, which was formed as a separate division within its parent group covering technical services and facilities management, energy efficiency and regeneration, to complete during the second half of 2022.
In recent years, Engie Regneration, one of the business areas incorporated within Equans, has done significant business within the UK’s social housing sector.
Earlier this year it signed a £120m contract with 45,000-home G15 landlord Optivo to deliver fire remediation work as part of a seven-year project involving removing and replacing combustible materials within external wall systems, as well as non-compliant balconies and spandrel panels.
Last year, Engie Regeneration was appointed by Sutton Housing Partnership to design and deliver a whole-house retrofit pilot scheme to homes across the borough as part of the London mayor’s Energy Leap initiative to fund net-zero projects.
In 2018, Engie also took over a multimillion-pound maintenance contract with older people’s housing and care provider Anchor after its existing provider went into administration.
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Catherine MacGregor, chief executive of Engie’s, said the deal with Bouygues was “a major milestone in the execution of our strategy, aimed at simplifying the group and accelerating investment in our core businesses, notably in renewables”.
Bouygues has agreed to not implement any forced redundancy plans in Europe for five years after closing the deal and aims to create 10,000 additional jobs over five years, Engie’s statement said.
Equans, which employs 74,000 people in 17 countries, generates an annual turnover of over €12bn, making it Bouygues’ biggest ever acquisition.
Olivier Roussat, chief executive of Bouygues, said: “The multi-technical services market is an up-and-coming one with strong growth potential, and will play a crucial role in the energy transition.”
He added: “This activity will become a new standalone business segment within the Bouygues group and will [when combined with the conglomerate’s existing energy and services division] be the largest in terms of headcount and sales.”
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