Mitie Acquires ESM Power for £8.5 Million, Strengthening Position in High Voltage Power Connections Market
Mitie has officially entered into an agreement to acquire ESM Power, a leading high voltage electrical engineering contractor specialising in grid and power connections. The deal, valued at up to £8.5 million, includes an initial payment of £5.5 million with performance-linked deferred payments of up to £3 million over the next two years.
Located in Lincolnshire, ESM Power brings 20 years of expertise in designing, delivering, and maintaining high voltage power connections across diverse sectors. Their impressive portfolio includes work with local authorities, commercial developments, and power generation sites. Notable blue-chip clients such as Canary Wharf Group, Cemex, Centrica, PepsiCo, and RWE highlight ESM Power's trusted reputation. As an accredited Independent Connections Provider (ICP) under the National Electricity Registration Scheme (NERS), ESM Power also boasts certified capabilities in transformer and switchgear installations.
Strategic Growth and Market Expansion
This acquisition strategically positions Mitie to enhance its footprint in the burgeoning high voltage power connections market, which is experiencing significant capital investment to support the UK's Net Zero goals. Mitie will leverage ESM Power's capabilities to expand its pipeline of high voltage connection projects, adding valuable design capabilities, private network solutions, and maintenance services to its portfolio. Simultaneously, ESM Power will benefit from access to Mitie’s extensive customer base across both public and private sectors.
Integration and Future Prospects
The transaction is set to be completed on 31st July. Post-acquisition, ESM Power’s team of 60 engineering designers and specialist high voltage installers will integrate into Mitie’s £1.1 billion Projects business. This division is renowned for delivering transformational projects across building infrastructure, decarbonisation technologies, fire and security, and telecoms infrastructure.
ESM Power complements Mitie’s recent acquisitions of Rock Power Connections and G2 Energy, which specialise in low voltage (mainly electric vehicle charging) and very high voltage power connections, respectively. Together, these acquisitions enable Mitie to offer a comprehensive suite of power connection services across all voltage levels.
Financial Performance
In the financial year ending 30 April 2024, ESM Power reported a revenue of £25.5 million, a significant increase from £10.4 million in FY23, alongside an EBITDA of £2.2 million (FY23: £0.2 million). The acquisition will be funded through Mitie’s existing financial facilities.
Leadership Perspectives
Mark Caskey, Managing Director of Mitie Projects, expressed enthusiasm about the acquisition, stating: "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 of ESM Power, shared similar sentiments: “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.”
The acquisition of ESM Power marks a significant milestone in Mitie’s strategic growth, reinforcing its commitment to leading the power connections market and supporting the UK’s energy transition efforts.
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