Published by Insider Media
MITIE GROUP EXPANDS WITH ELECTRICITY FIRM TAKEOVER
Facilities management giant Mitie Group has expanded with the takeover of a high voltage electricity supplies installation specialist in a deal worth up to £14.5m.
Rock Power Connections in Worcester has nationwide coverage working across the renewal of industrial and commercial customers' electrical assets and the EV charging industry.
Mitie has already worked on several thousand EV charging points for a broad range of customers and end-users, and with the market shifting towards high voltage chargers alongside increasing demand for new connections into the National Grid, Mitie believes the purchase "will significantly enhance" its standing in the sector.
The transaction consideration comprises an initial payment of £10m, with two deferred payments in aggregate of up to £4.5m by the end of FY23 linked to stretching performance targets.
Rock co-founders Matt Crampton and Kev Sankar will both join Mitie to drive the business forward.
Phil Bentley, chief executive of Mitie, said: "Decarbonising our energy system is an absolute imperative for the UK.
"As we expand the support Mitie Energy gives our clients, the acquisition of Rock will allow Mitie to capture a greater share of the fast growing high voltage electric vehicle charging market, and is in line with our strategy of investing in high growth, high return businesses within the energy space."
For the year to 31 December 2020, Rock reported revenue of £7.4m and operating profit of £400,000. Performance so far this year has been "well ahead" of that achieved in 2020.
A team from Squire Patton Boggs led by corporate partner Geoff Perry and associate Shauna Halls advised Rock Power Connections and the sellers on the deal.