M Group Services, UK’s ninth-largest contractor, has been sold to CVC, a Luxembourg-based private equity fund.
- The transaction, to be completed by autumn, marks a strategic shift for M Group Services under new ownership.
- CVC aims to foster organic growth and pursue strategic acquisitions, enhancing M Group’s market position.
- The contractor, with over 11,000 staff, plays a critical role in the UK’s infrastructure sector.
- The acquisition underscores the market appeal of sectors driven by infrastructure age and technological advancements.
The acquisition of M Group Services by the Luxembourg-based CVC fund signifies a pivotal transformation for the UK’s ninth-largest contractor. This transaction, which is set to conclude by autumn, involves the transfer of ownership from PAI Partners to CVC. Notably, M Group Services recorded a turnover of £1.86bn in the 2022/23 fiscal year, indicating its significant market influence.
M Group Services, headquartered in the UK, employs over 11,000 staff across 216 locations, operating in critical sectors such as water, energy, telecoms, and transport. Since its inception in 2016 from Morrison Utility Services, the company has witnessed substantial growth under PAI Partners, acquiring 14 businesses and achieving revenues surpassing £2bn today.
The Luxembourg-based CVC acquired M Group Services via its Fund IX, a substantial €26bn initiative, recognised as the largest private equity fund ever raised. The value of this acquisition remains undisclosed, although PAI Partners sought up to £1.5bn in previous discussions, according to reports. This transaction reflects the strategic ambitions of CVC to bolster M Group’s growth trajectory.
This strategic takeover will enable CVC to closely collaborate with M Group Services’ management to accelerate organic growth and leverage further mergers and acquisitions. Chief Executive Andrew Findlay expressed optimism about CVC’s involvement, highlighting the robust plans for growth, aiming to deliver enhanced services and innovation in the infrastructure domain.
Dominic Murphy, a leading figure at CVC, acknowledged M Group Services as a leader within an evolving market, driven by essential trends such as ageing infrastructure and decarbonisation. The partnership is poised to capitalise on these trends, ensuring M Group Services continues to lead with innovation and expertise.
The acquisition by CVC positions M Group Services for significant growth and strategic advancements in the UK’s infrastructure sectors.
