Lausanne – Alpiq is splitting off the industrial business, creating added value for the Group and thus strengthening its core business. In connection with this, Alpiq has signed an agreement with Bouygues Construction, based in Guyancourt (France), on the sale of the Engineering Services business, which comprises InTec and the Kraftanlagen Group, for CHF 850 million. Closing is expected in the second half of 2018. The sale is subject to customary conditions including the approval by the relevant antitrust authorities in the EU and Switzerland.
There are two main reasons for the transaction: firstly, the challenging situation of Swiss production on the free market means that Alpiq currently does not have the funds to enhance the Engineering Services business and thus to strengthen its number one position in various markets. Alpiq is therefore no longer the right owner for the Engineering Services business with its operations in the industrial market. Secondly, the transaction allows Alpiq to create added value for the Group and thus strengthens its core business.
Engineering Services business in industrial hands in the future
Jasmin Staiblin, CEO of Alpiq, says: “With Bouygues Construction as the new owner of InTec and Kraftanlagen Group it is a win-win situation that offers both companies and their employees new business prospects. InTec and the Kraftanlagen Group give the new owner access to committed employees who are dedicated to the needs of their customers on a daily basis and an attractive portfolio of innovative, profitable businesses in growth markets.” Bouygues Construction can successfully develop the business further, make the necessary investments and tap the existing potential. These are the ideal prerequisites for InTec and the Kraftanlagen Group to be able to capitalise on their leading positions under a new umbrella structure. The transaction opens up new prospects for 7,650 employees (4,000 employees and 420 apprentices of which are in Switzerland).
Philippe Bonnave, Chairman and Chief Executive of Bouygues Construction, says: “Alpiq Engineering Services and Bouygues Construction share the same values and the same culture of innovation and operational excellence. Above all, it’s the quality and the day-to-day commitment of the men and women of our company that ensure our successes. Through the combination of our skills and the complementary nature of our businesses, this acquisition establishes Bouygues Construction as a benchmark player in energy and services in Europe.”
Alpiq focuses on its core business
This divestment allows Alpiq to focus on its core business, which comprises power production in Switzerland as well as international activities consisting of the flexible, diversified power plant portfolio, the new renewable energies and the strong market presence in energy trading. In addition, Alpiq intends to increase efficiency by making its core business more digital and systematically enhancing its customer portfolio with smart solutions, also outside of Switzerland.
After the Engineering Services transaction is closed, the following divisions will remain at Alpiq: Digital & Commerce (international energy trading, customer business with structured products, customer business with digital solutions), international thermal power production and new renewable energies as well as Generation Switzerland (power production in Switzerland).