Merged with ESP to create one of the largest UK gas distributors
British Gas Connections Limited (BGCL) was a UK gas connections business. It was acquired by Terra Firma in 2005 as part of its bolt-on acquisition strategy for East Surrey Pipelines (ESP), the UK gas distribution business that was acquired as part of East Surrey Holdings.
BGCL had a network of 136,000 connections and a further contracted order book of 38,000 connections. The business was a wholly-owned subsidiary of Centrica Plc, but was considered a non-core asset. Combining it with ESP created significant operating synergies and a strong platform for further growth.
The BGCL investment has been realised. ESP was continuing its consolidation of the gas sector in Great Britain when Terra Firma was offered a high price for the business. Its activity had caused other investors to see the value in the sector. ESP was later sold to an infrastructure investor.