REG - MITIE Group PLC - Mitie acquires JCA Engineering

MITIEAnnouncement

04/09/2023 07:00

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RNS Number : 2003L  MITIE Group PLC  04 September 2023

 
4 September 2023

Mitie Group plc

LEI number: 213800MTCLTKEHWZMJ03

 

Mitie acquires leading critical environment project designer and engineering
principal contractor, JCA Engineering

 

Mitie Group plc ('Mitie' or 'the Group') announces the acquisition of leading
critical environment project designer and principal contractor, JCA
Engineering ('JCA'), for a maximum cash consideration of £31.5m 1 
(comprising an initial payment of £21m and deferred payments of up to £10.5m
over three years, linked to performance).

 

Based in Stevenage, JCA has 20 years of experience in delivering complex
engineering projects across the UK, specialising in consulting, design, build
and maintenance, with a particular focus on critical environments such as data
centres, life sciences and healthcare sectors.  The company's strengths are
in mechanical and electrical works, asset upgrades and replacements, and
office fitouts.

 

JCA also holds design patents for cooling systems in data centres, delivering
the highest levels of performance and energy efficiency. The company's
'end-to-end' approach to project delivery, combined with longstanding
relationships across the public and private sectors, will enhance Mitie's
growing projects capabilities as a principal contractor to its clients.  JCA
will gain access to Mitie's extensive customer base in our Communities and
Central Government & Defence divisions, as well as those in the private
sector.

 

For the 12 months ended 31 December 2022, JCA delivered revenue of £71.8m
(17% yoy growth) and EBITDA of £5.1m (4% yoy growth).

 

The acquisition will be funded from Mitie's existing facilities.

 

Phil Bentley, Group Chief Executive, Mitie, said:

"We are delighted to welcome the JCA Engineering team to Mitie. The
acquisition of JCA Engineering follows the Group's strategy to invest in high
growth, high margin companies, enhancing our projects capabilities in the
growth areas of energy efficiency, office fitouts and critical environments."
 

 

Ian Hodges-Jackson, Founder and Chairman, JCA Engineering said:

"I am proud of my team and the capabilities we have built at JCA Engineering
over the past 20 years, alongside our reputation for delivering as principal
contractor in critical environments. Given Mitie's access to a wide range of
clients and its ability to finance faster growth, I'm very excited about the
next phase of JCA Engineering's development."

 

 

-ENDS-

For further information

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

 Group IR 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's job is to look after places where Britain works, and
it is the leading facilities management company in the UK. We offer a range of
services to the public sector through our Central Government & Defence and
Communities (Healthcare, Education, Campus & Critical and Care &
Custody) divisions. Our Technical Services (Engineering Services, Energy,
Water and Real Estate Services) and Business Services (Security, Cleaning,
Landscapes, Spain and Waste) divisions serve private sector customers in areas
such as Financial & Professional Services, Industrials, Retail and
Transport, and increasingly the public sector.

Mitie employs 64,000 people. We take care of our customers' people and
buildings, through the 'Science of Service', and we are transforming
facilities to be more flexible, safe, sustainable, and attractive to all.
Mitie continues to execute its technology-led strategy and in the past twelve
months has received multiple awards and validation for its ambitious near and
long-term science-based emissions reduction targets from the Science Based
Targets initiative (SBTi). Find out more at www.mitie.com
(http://www.mitie.com) .

Mitie Projects employs 2,500 colleagues and delivers a full suite of
engineering services, including mechanical and electrical, fire and security
hardware, decarbonisation, renewable energy installation, electrical
connections, and telecoms infrastructure.

 

About JCA Engineering

Stevenage based JCA Engineering is an engineering services-led principal
contractor employing 200 colleagues. JCA designs, builds and maintains
buildings that have a high degree of mechanical and electrical engineering
systems, such as data centres. Specific services include Critical Plant
replacement, Data Centre engineering, Critical Environment engineering, Office
Fitouts, and Infrastructure Engineering (www.jca.co.uk (http://www.jca.co.uk)
).

 1  On a cash free, debt free basis with a normalised level of working
capital. The acquisition includes £23m of cash or cash equivalents, for which
Mitie will pay an equivalent amount to receive.

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