1st Nov 2021 09:32
(Alliance News) - Mitie Group PLC said Monday it has acquired Rock Power Connections Ltd for up to GBP14.5 million.
The Glasgow-based facilities management and professional services company will pay an initial GBP10 million for Rock with two deferred payments in aggregate of up to GBP4.5 million by the end of financial 2023.
"Rock has nationwide coverage and specialises in the design and installation of new high voltage electricity supplies, the renewal of industrial and commercial customers' electrical assets up to 132,000 volts, and the EV charging installation for non-residential blue-chip customers," Mitie explained.
The deal will be cash free, debt free, Mitie noted, and it expects Rock to be accretive to earnings in the first 12 months of ownership.
The acquisition will be funded from existing facilities.
In 2020, Rock generated revenue of GBP7.4 million with an operating profit of GBP400,000.
"Performance so far this year has been well ahead of that achieved in 2020, with significant growth expected to continue into the future, based on both a current order book which is underpinned by long-term framework agreements, and access to Mitie's clients," Mitie added.
Chief Executive Phil Bentley 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."
Shares in Mitie were 2.4% higher in London on Monday morning at 66.92 pence each.
By Paul McGowan; [email protected]
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