BY Fraser Tennant
In a €7.1bn transaction that will create a French world leader in energy, digital and industrial transition, construction and services group Bouygues is to acquire the autonomous multi-technical services firm Equans from multinational utility company Engie.
Under the terms of the agreement, 100 percent of the shares of Equans will be financed from the Bouygues group’s existing resources and a fully committed loan from partner banks, which will ultimately be refinanced through bond issuance.
Through the acquisition of Equans, Bouygues intends to create a world leader in multi-technical services, anchored in France. As part of the deal, Bouygues has agreed to not implement any forced redundancy plans in France and Europe for five years after closing, and to create 10,000 additional jobs over the same period.
Launched in July 2021 as a separate division within Engie, Equans has become a global multi-technical services leader employing 74,000 people in 17 countries, 27,000 of whom are in France. The firm generates an annual turnover of more than €12bn.
“By joining Bouygues, Equans will benefit from the strong growth of its underlying markets,” said Catherine MacGregor, chief executive of Engie. “This is a major milestone in the execution of our strategy, aimed at simplifying the group and accelerating investment in our core businesses, notably in renewables.”
The transaction is expected to be completed by the second half of 2022.
“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,” said Olivier Roussat, chief executive of Bouygues. “The acquisition of Equans by Bouygues is a project that creates value for customers, for employees and for shareholders. This activity will become a new standalone business segment within the Bouygues group and will be the largest in terms of headcount and sales.”
Completion of the transaction is subject to regulatory approvals and customary closing conditions.
Mr Roussat concluded: “This is the biggest acquisition Bouygues has ever made, and all our people will pull together to make it a success.”
News: Equans services group to become Bouygues' largest business segment