Mitie acquires high voltage electrical engineering firm in £8.5m deal
- ESM Power's 60 engineering designers will join Mitie's £1.1bn Projects business
Mitie has agreed to buy ESM Power, a high voltage electrical engineering business specialising in grid and power connections, in a deal worth up to £8.5million.
The consideration comprises an initial payment of £5.5million and performance-linked deferred payments of up to £3million over two years.
Mitie shares rose 0.5 per cent or 0.6p to 120.00p on Wednesday, having risen over 20 per cent in the last year.
![It's a deal: Mitie has agreed to buy ESM Power for up to £8.5m](https://i.dailymail.co.uk/1s/2024/07/17/08/87435615-13642495-image-a-18_1721203095154.jpg)
It's a deal: Mitie has agreed to buy ESM Power for up to £8.5m
ESM Power, based in Lincolnshire, 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'.
Following the completion of the deal, ESM Power's 60 engineering designers and high voltage installers will join Mitie's £1.1billion Projects business, which delivers projects across buildings infrastructure, decarbonisation technologies, fire and security, and telecoms infrastructure.
Mark Caskey, managing director of Mitie Projects, said: '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.'
Roger Bamford, managing director of ESM Power, said: ''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.'
Last month, outsourcer Mitie raised its dividend after a 48 per cent jump in annual pre-tax profit, helped by strong margins and new contract wins, including from government departments and e-commerce giant Amazon. The group upped its total annual dividend by 38 per cent to 4p per share.
Mitie, which provides security, cleaning, engineering and other services to public and private sector clients, has started a new three-year plan to boost margins through productivity and increasing its use of artificial intelligence analytics.
The plan is underpinned by a £19billion pipeline of opportunities, according to the group.
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