PARIS, FRANCE: Equans, a subsidiary of the French construction giant Bouygues, has agreed to sell its UK district heating and cooling networks to a consortium of Swiss and British investors for about £260 million.

The deal, announced on 15 September 2023, will see Swiss Life Asset Managers and Schroders Greencoat LLP acquire Equans Urban Energy, which operates heat networks in East London, Humber and other locations.

The sale is part of Equans’ strategy to divest from asset-based activities and focus on its core services in facilities management, energy and digital solutions. Equans said the transaction would not affect its revenue and profit targets for 2023.

Equans is a leading player in the UK’s energy transition, providing low-carbon solutions to industries and cities. The company generates annual revenues of around £2.5 billion in the UK.

The buyers said they were committed to supporting Urban Energy’s net zero goals and investing in the expansion and decarbonisation of its heat networks. They said this would benefit the UK’s climate agenda and create local jobs and infrastructure.

The transaction is expected to close in the last quarter of 2023, subject to regulatory approvals.

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