REG - MITIE Group PLC - Mitie acquires ESM Power

MITIEAnnouncement

17/07/2024 07:00

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RNS Number : 6742W  MITIE Group PLC  17 July 2024

17 July 2024

 

Mitie acquires ESM Power, a leading high voltage electrical engineering
business

 

Mitie Group plc ('Mitie' or 'the Group') announces that it has entered into an
agreement to acquire ESM Power, a leading high voltage electrical engineering
business specialising in grid and power connections, for a maximum
consideration of £8.5m 1  (#_ftn1) (comprising an initial payment of £5.5m
and performance-linked deferred payments of up to £3m over two years).
 Completion is expected on 31 July 2024.

 

Based in Lincolnshire, ESM Power has 20 years of experience in the design,
delivery and maintenance of high voltage power connections across a broad
range of sectors, including local authorities, commercial developments and
power generation sites.  Blue-chip customers include Canary Wharf Group,
Cemex, Centrica, PepsiCo and RWE.  As an accredited Independent Connections
Provider (ICP) for the National Electricity Registration Scheme (NERS), the
company also has certified transformer and switchgear installation
capabilities.

 

The acquisition of ESM Power will enhance Mitie's expertise in the growing
high voltage power connections market, which continues to benefit from
significant capital investment in energy networks for the UK to achieve Net
Zero.  It will expand our pipeline of high voltage connections projects and
add design capabilities, private network solutions and maintenance to support
our customers in the upgrade and decarbonisation of their power requirements.
 Simultaneously, ESM Power will gain access to Mitie's extensive customer
base across the public and private sectors.

 

On completion of the transaction, ESM Power's 60 engineering designers and
specialist high voltage installers will join Mitie's £1.1bn Projects
business, which delivers transformational projects across buildings
infrastructure, decarbonisation technologies, fire & security and telecoms
infrastructure.  ESM Power complements Mitie's recent acquisitions of Rock
Power Connections and G2 Energy, which specialise, respectively, in low
voltage (primarily electric vehicle charging) and very high voltage power
connections.  Together, the three businesses will enable Mitie to offer our
customers a full suite of power connections services of any size and voltage.

 

In the 12 months ended 30 April 2024, ESM Power delivered revenue of £25.5m
(FY23: £10.4m) and EBITDA of £2.2m (FY23: £0.2m).  The acquisition will be
funded from Mitie's existing facilities.

 

Mark Caskey, Managing Director - Mitie Projects, said:

"We are delighted that the ESM Power team will be joining Mitie.  This
acquisition strengthens our position as a leading provider of power
connections in the UK, offering our customers a comprehensive range of design,
delivery and maintenance capabilities to support their decarbonisation and
asset resilience objectives.  It is a continuation of the Group's strategy to
invest in high growth, high margin companies that enhance our full asset
lifecycle Projects business.  We look forward to working with our new
colleagues."

 

Roger Bamford, Managing Director - ESM Power, said:

"I am proud of the ESM Power team and the business we have built over the past
20 years.  We are excited to be joining the Mitie team, sharing our expertise
and benefiting from the opportunity to work with Mitie's experienced
colleagues and extensive customer base to grow our business."

 

-ENDS-

For further information

 Kate Heseltine                                M: +44 (0)738 443 9112    E: kate.heseltine@mitie.com (mailto:kate.heseltine@mitie.com)

 Group IR and Corporate Finance Director

 Claire Lovegrove                              M: +44 (0)790 027 6400    E: claire.lovegrove@mitie.com (mailto:claire.lovegrove@mitie.com)

 Director of Corporate Affairs

 Richard Mountain                              M: +44 (0)790 968 4466

 FTI Consulting

 

About Mitie

Founded in 1987, Mitie employs 68,000 colleagues and is the leading
technology-led Facilities Transformation company in the UK.  We are a trusted
partner to around 3,000 blue chip customers across the public and private
sectors, working with them to transform their built estates, and the lived
experience for their colleagues and customers, as well as providing
data-driven insights to inform better decision-making.

 

In each of our core services of Engineering (Hard Services) and Security and
Cleaning & Hygiene (Soft Services) we hold market leadership positions.
 We also upsell Projects capabilities in the areas of building fitouts and
modernisation, decarbonisation, fire & security, and telecoms
infrastructure.  Our sector expertise includes Central Government, Critical
National Infrastructure, Defence, Financial Services, Healthcare & Life
Sciences, Local Government & Education, Retail & Logistics and
Transport & Aviation.

 

Over the previous Three-Year Plan (FY22 - FY24) Mitie delivered a Total
Shareholder Return (TSR) of 80% (#10 in FTSE 250).  Our new Facilities
Transformation Three-Year Plan (FY25 - FY27) is expected to extend Mitie's
market leadership position through accelerated growth and deliver enhanced
shareholder returns.

 

We hold industry-leading ESG credentials, including a place on the CDP Climate
change A List, and in the past 12 months we have received multiple industry
awards including B2B Marketing Team of the Year, Best Low Carbon Solution and
Net Zero Carbon Strategy of the Year.  Targeting Net Zero by the end of 2025,
our ambitious emissions reduction plans have been validated by the Science
Based Targets initiative (SBTi).  We have been recognised as a UK Top
Employer for the sixth consecutive year. Find out more at www.mitie.com
(http://www.mitie.com/) .

 

About ESM Power

ESM Power is a leading electrical engineering company offering a complete
service for existing electricity networks and new connections. Established in
2002, the business designs, delivers and maintains high voltage electrical
networks (between 11kV to 132kV) safely, securely and economically. It is a
customer-focused business that delivers high standards every time.

 1  (#_ftnref1) The consideration reflects a cash free, debt free purchase,
with a normalised level of working capital

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