Centrica has agreed to sell British Gas Connections, its licensed gas transporter business, to Kellen Venture for £90 million.
Kellen Venture is a new company owned 75 per cent by Terra Firma, the European private equity group, with the remainder in the hands of East Surrey Holdings.
BGCL, which owns and operates gas transportation networks, primarily to new housing developments, has connected 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 homeowners by British Gas' siteworks business, New Housing Connections.
Centrica said the sale of BGCL followed a strategic review of the business.
It delivered operating profits of £3.9 million, turnover of £8.8 million and EBITDA (earnings before interest, tax, depreciation and ammortisation) of £6.4 million in 2004.
A team from law firm Eversheds team consisting of Birmingham-based corporate partners Chris Garnett and Keri Rees and corporate lawyers Alastair Peet, Amerjit Kalirai, Theresa-Marie Timmons and Will Yates advised on the sale.
