Outsourcing giant Mitie has landed a deal for leading electrical engineering firm ESM Power, as it continues to invest in “high growth” firms.
The specialists in grid and power connections will be taken over by the Shard-based titan for a maximum of £8.5m, with the deal expected to be completed by July 31.
Initial payment for the Lincolnshire power firm will run to £5.5m with performance-linked deferred payments of up to £3m to be shelled out over two years, Mitie said in a statement, and confirmed the acquisition will be funded from its existing facilities.
Mark Caskey, managing director of Mitie Projects, said the acquisition “strengthens our position as a leading provider of power connections in the UK”.
He added: “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.”
ESM’s blue-chip customers include Canary Wharf Group, Centrica and PepsiCo, and it boasts 20 years experience and certified transformer and switchgear installation capabilities.
A total of 60 engineering designers and specialist high voltage installers will now transfer to Mitie’s £1.1bn projects business upon completion of the transaction.
Roger Bamford, managing director of ESM Power, said: “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.”
The deal, Mitie said, will boost its profile in the “growing high voltage power connections market” amid continued “significant capital investment” as the UK moves towards net zero.
It also follows the firm’s recent acquisitions of Rock Power Connections and G2 Energy, specialising in low voltage, primarily electric vehicle charging, and very high voltage power.
In the year to April 30, ESM Power delivered revenue of £25.5m (FY23: £10.4m) and EBITDA of £2.2m (FY23: £0.2m), Mitie said.