Mitie to buy ESM Power for up to £8.5m

17th Jul 2024 07:21

(Sharecast News) - Mitie said on Wednesday that it has agreed to buy ESM Power, a high voltage electrical engineering business specialising in grid and power connections, for up to £8.5m.

The consideration comprises an initial payment of £5.5m and performance-linked deferred payments of up to £3m over two years.

Based in Lincolnshire, ESM Power has 20 years of experience in the design, delivery and maintenance of high voltage power connections across a broad range of sectors, including local authorities, commercial developments and power generation sites.

Mitie said the acquisition will enhance its expertise in the growing high voltage power connections market, "which continues to benefit from significant capital investment in energy networks for the UK to achieve Net Zero".

Once the deal completes, ESM Power's 60 engineering designers and specialist high voltage installers will join Mitie's £1.1bn Projects business, which delivers projects across buildings infrastructure, decarbonisation technologies, fire & security and telecoms infrastructure.

Mark Caskey, managing director of Mitie Projects, said: "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."