Mitie acquires ESM Power for $11Mn, expands electrical engineering capabilities
LONDON, UNITED KINGDOM — Mitie Group plc, a strategic outsourcing and energy services company, has announced its acquisition of ESM Power, a high voltage electrical engineering specialist, for up to £8.5 million (US$11 million).
The acquisition includes an initial payment of £5.5 million (US$7.1 million) and performance-linked deferred payments up to £3 million (US$3.9 million) over two years.
Completion of the acquisition is expected by July 31, 2024.
We’re pleased to announce that @ESMPowerLtd will be joining Mitie. With 20 years’ experience in the design, build, operation and maintenance of high-power connections, ESM Power will help Mitie Project’s customers decarbonise their estates. Read more > https://t.co/m2k4nre4u7 pic.twitter.com/TM80tc3UW9
— Mitie (@mitie) July 17, 2024
Boosting Mitie’s power portfolio
ESM Power’s 60 engineering designers and high voltage installers will join Mitie’s £1.1 billion (US$1.4 billion) Projects business. This business segment focuses on transformational projects across various domains, including buildings infrastructure, decarbonisation technologies, fire and security, and telecoms infrastructure.
This acquisition complements Mitie’s purchases of Rock Power Connections and G2 Energy, allowing the company to offer a comprehensive range of power connection services across all voltages.
ESM Power, based in Lincolnshire, brings 20 years of experience in designing, delivering, and maintaining high voltage power connections across various sectors. The company’s blue-chip customer base includes Canary Wharf Group, Cemex, Centrica, PepsiCo, and RWE.
As an accredited Independent Connections Provider (ICP), ESM Power also offers certified transformer and switchgear installation capabilities.
Mitie’s growing market presence
Mark Caskey, Managing Director of Mitie Projects, commented on the acquisition: “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.”
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.”
In the 12 months ended April 30, 2024, ESM Power reported revenue of £25.5 million (US$33 million) and EBITDA of £2.2 million (US$2.8 million).
Founded in 1987, Mitie employs 68,000 people and serves around 3,000 blue-chip customers across the public and private sectors in the United Kingdom. The company offers various outsourced services including facilities management, security, cleaning, landscaping, energy management, and technical services.
