Keepmoat has sold its regeneration arm to energy and services provider Engie for £330m.
Dave Sheridan, who has been Keepmoat chief executive since 2012, will join Engie as part of the move.
The regeneration business, which specialises in design, build and refurbishment, had a turnover of £802.7m and an order book of just over £1bn for the year to 31 March 2016.
Keepmoat will continue to operate its homes division, which had a turnover of £336.6m, under the Keepmoat brand.
The Doncaster-headquartered Keepmoat group was bought by private equity firms TDR and Sun Capital in 2014 in a deal worth around £400m.
The private equity firms today said they would continue to invest in Keepmoat Homes, with a target to build more than 3,500 homes in the 2018 financial year.
Peter Hindley, managing director of the homes division, will remain in his role alongside the rest of Keepmoat Homes’ management team.
Engie and Keepmoat said the deal was conditional on anti-trust clearance and would be finalised “in a few months”.
All 2,500 employees in the regeneration business will join Engie, bringing the acquiring company’s total staff numbers in the UK towards 20,000.
Engie UK and Ireland chief executive Wilfrid Petrie said: “Engie aims to be the number one partner for cities and places in the UK and with the Keepmoat regeneration business we are extending and deepening our relationships with local authorities right across the country.
“By combining our energy expertise with an expanded services capability, we can make a bigger impact as we help to improve lives of the communities we serve.
“Today, buildings account for 30 per cent of UK carbon emissions and our investment in Keepmoat’s regeneration business underlines our long-term commitment to the UK as it transitions to a lower-carbon economy.
“This transaction will also support our growth ambitions for decentralised energy networks and our home energy business as the regeneration activities will bring us closer to the end customer.”