Equans agrees district heating sale

Bouygues-owned services firm Equans has agreed to sell its UK district heating and cooling network activities.

A consortium of Swiss Life Asset Managers and Schroders Greencoat has signed an agreement to acquire the business in a £260m deal.

Known as Equans Urban Energy, the business to be sold includes East London Energy and Equans DE Holding Company. Humber Energy will also be included in the transaction.

“We remain committed to Urban Energy’s net zero ambitions and plan to make investments in the coming years to support the continued decarbonisation and growth of both existing and new heat networks,” said Gabriele Damiani, head of core infrastructure at Swiss Life Asset Managers, and Minal Patel, partner at Schroders Greencoat.

Equans said the sale is in line with its strategic plan, which includes the sale of asset-based activities. Completion of the transaction is expected in the last quarter of 2023, subject to relevant approvals.