Mitie has made significant strides by acquiring ESM Power, signalling a strategic investment in the high voltage power connections sector.
- Mitie will pay £5.5 million initially with up to £3 million in additional payments based on performance over two years.
- The acquisition will culminate with ESM Power’s integration into Mitie’s £1.1bn Projects business, aligning with decarbonisation and infrastructure improvement goals.
- This move enhances Mitie’s portfolio, drawing upon ESM Power’s extensive client base and two decades of industry experience.
- Leaders from both organisations express optimism, highlighting increased capabilities and market reach as central benefits.
Mitie’s acquisition of ESM Power marks a distinct step into the specialised field of high voltage power connections. This strategic decision involves an immediate payment of £5.5 million, accompanied by contingent payments totalling up to £3 million based on ESM Power’s performance over the coming two years. The completion of this transaction is anticipated by 31st July 2024.
Located in Scunthorpe, ESM Power brings to the table a rich tapestry of 20 years in the design, delivery, and maintenance of high voltage power connections. The company’s accreditation under the National Electricity Registration Scheme (NERS) as an independent connections provider underscores its solid reputation. Prestigious clients such as Canary Wharf Group, Cemex, Centrica, PepsiCo, and RWE testify to ESM’s credibility and substantial market standing.
By incorporating ESM Power into its expansive £1.1bn Projects business, Mitie aims to significantly bolster its service offerings across critical sectors, including infrastructure, decarbonisation, and telecoms. The acquisition not only complements Mitie’s existing capabilities but also provides ESM Power with the opportunity to leverage Mitie’s extensive customer network.
This transaction is in coherence with Mitie’s recent acquisitions of Rock Power Connections and G2 Energy, firms specialising in low and very high voltage power connections respectively. This strategy reflects Mitie’s concerted effort to fortify its market position in power connections with a diverse yet cohesive portfolio.
From the leadership of both companies, there is evident enthusiasm for the merger. Mark Caskey, Mitie Projects’ Managing Director, asserts that this move reinforces Mitie’s stature as a leading power connections provider within the UK. On the other hand, Roger Bamford, Managing Director of ESM Power, expresses pride in joining forces with Mitie, highlighting mutual benefits and shared aspirations for growth.
This acquisition marks a significant expansion of Mitie’s capabilities and market reach in the power connections sector.
