Centrica plc today announced that it has agreed to sell British Gas Connections Limited (BGCL), its licensed gas transporter business, to Kellen Venture Limited for a consideration of £90 million. Kellen Venture Limited is a new company owned by Terra Firma (75 per cent), and East Surrey Holdings plc (25 per cent).
BGCL which owns and operates gas transportation networks, primarily to new housing developments, has connected assets serving 139,000 properties in the UK. The business also has a future order book of 35,000 connections which will be completed on behalf of the purchaser by British Gas’ siteworks business, New Housing Connections.
British Gas will retain the siteworks business which manages the relationships required to support the sale of energy and related services to housing developers and new homeowners.
The sale of BGCL follows a strategic review of the business, which delivered operating profits of £3.9 million, turnover of £8.8 million and EBITDA of £6.4 million in 2004.