The deal is expected to clear in the second quarter of the year. Keepmoat chief executive Dave Sheridan will transfer to Engie at completion, together with the entire Regeneration division’s infrastructure and all 2,500 employees.
Keepmoat’s venture capital owners, TDR and Sun Capital, who took over the company in 2014, said that they would maintain the growth plans of Keepmoat Homes, the smaller social house-building contractor part of the group.
Keepmoat’s Regen division is twice the size of its Homes business. In the year to 31st March 2016, Keepmoat Regen turned over £803m; Keepmoat Homes did £337m of business. However, Keepmoat Homes has doubled in size since 2014 and has a target to build more than 3,500 homes in fiscal 2018. The Keepmoat Homes management team remains in place, under Peter Hindley.
Peter Hindley said: “Keepmoat has grown significantly by serving the huge demand for quality new homes that are well designed and offered at prices people can afford. We have the investment and sites to build more homes than ever before, and help yet more people secure a place of their own. Keepmoat will keep growing strongly.”
The Keepmoat regeneration business specialises in the design, build and refurbishment of buildings and places. Completion of the transaction is conditional on anti-trust clearance and is expected to take place within a few months.
The new owner, Engie, is a French electric utility company that employs 17,000 people in the UK already. It is a major provider of property services and energy management, including district heating schemes.
Keepmoat chief executive Dave Sheridan, now moving to Engie, said: “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.”
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 lives of the communities we serve. Today, buildings account for 30% of UK carbon emissions and our investment in Keepmoat’s regeneration business 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.”