Construction News

Thu April 15 2021

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SSE sheds its contracting business

6 Apr Investment company Aurelius has agreed a deal with SSE plc to buy its Contracting business for an undisclosed sum.

SSE’s sale of its Contracting business is part of a planned rationalisation
SSE’s sale of its Contracting business is part of a planned rationalisation

SSE Contracting is the largest street light contractor in the UK and its high voltage engineers install energy infrastructure for clients including schools, hospitals and substations. Its rail division delivers mechanical, electrical and civils activity for Network Rail and Transport for London and.

The sale process is expected to be completed by the end of June 2021, when around 1,900 SSE Contracting employees will work under the new ownership.

SSE’s sale of its Contracting business is part of a planned rationalisation to raise at least £2bn from disposals of non-core assets by autumn 2021, and to refocus on its core networks and renewables businesses. SSE plans to invest £7.5bn in low-carbon energy infrastructure over the next five years and to treble its renewable electricity output by 2030.

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Stuart Chaston, managing director of SSE Contracting and Rail, said: “Aurelius has a proven record of actively supporting the companies they work with, so this partnership heralds an exciting era of growth for our Contracting business. The UK has a strong pipeline of infrastructure projects, so we see an addressable market of significant scale for companies with the experience of SSE Contracting.”

He added: “I am confident the Contracting business will flourish once it has established itself as a standalone business – winning and delivering new work across the UK. We will be working flat out with our clients and partners to ensure a smooth period of transition.”

Tristan Nagler, UK managing director of Aurelius, said: “As other sellers before, SSE recognised Aurelius to be the partner of choice to execute the divestment of a promising business unit, establishing SSE Contracting as a standalone business so it can fully take advantage of new growth opportunities.”

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