French multinational utility Veolia has acquired Czech Republic-based district heating network operator Prazska Teplarenska.
The network is currently the largest heating network in the Czech Republic, covering 550 kilometers and employing more than 400 employees.
The grid supplies heating to 230,000 homes, municipal installations and tertiary-sector premises on a daily basis.
The acquisition will strengthen Veolia’s position in energy services in the Czech Republic.
The deal adds €230 million ($270.7 million) in annual revenue for Veolia.
Veolia has been present in the city of Prague for more than 20 years through its subsidiary PVK, an operator of water distribution networks in the city.
“This transaction is a structural step that will further consolidate our presence in the region. It also fits in perfectly with Veolia’s strategy in Central and Eastern Europe to develop the management of municipal heating networks through long-term national and local partnerships and to offer our customers innovative and distinctive services”, said Philippe Guitard, Veolia’s senior executive vice president, Central and Eastern Europe.
District heating networks, operated by Veolia in partnership with CEZ, supply nearly 712,000 of the country’s inhabitants, and it also provides energy services to 230 industrial and tertiary-sector customers.