Mitie Group acquires Rock Power Connections for up to £14.5m

Mitie Group acquires Rock Power Connections Limited for up to £14.5m

LONDON, UK: Mitie Group has acquired Rock Power Connections Limited (Rock), a leading Independent Connections Provider (ICP).

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 132kV, and the EV charging installation for non-residential blue-chip customers.

Mitie has already delivered several thousand EV charging points for a broad range of customers and end-users. With the market shifting towards high voltage chargers, and with the increasing demand for new connections into the National Grid, we are confident that the acquisition of Rock will significantly enhance Mitie’s ability to offer a truly end-to-end solution to meet our clients’ net zero goals.

The transaction consideration comprises an initial payment of £10m, with two deferred payments in aggregate of up to £4.5m by the end of FY23, linked to stretching performance targets. Rock will be acquired cash free, debt free, with a normalised level of working capital and will be accretive to earnings in the first 12 months of ownership. The acquisition will be funded from existing facilities.

For the year ended 31 December 2020, Rock reported revenue of £7.4m and operating profit of £0.4m. 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.

Rock co-founders Matt Crampton and Kev Sankar will both join Mitie to drive the business forward.

Phil Bentley, Chief Executive Officer, Mitie, 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.”

Founded in 1987, Mitie’s job is to look after places where Britain works and is the leading facilities management company in the UK. We offer a range of services to  Central Government and Defence customers; Communities (Healthcare, Education and Local Authorities); and Technical Services (Engineering Services, Energy, Water and Real Estate Services) and Business Services (Security, Cleaning and Office Services) to Private Sector clients in Financial Services, Manufacturing, Transport, Retail and Telecoms and increasingly to the public sector. Finally, our Specialist Services (Care & Custody, Landscapes and Waste Management) division serves both the public and private sectors in these niche businesses.

Mitie acquired Interserve’s FM business in December 2020 and now employs 75,000 people. We are the champion of the ‘Front-Line Heroes’ who have kept Britain working during the COVID-19 pandemic. We take care of our customers’ people and buildings, through the ‘Science of Service’, delivering essential services and deploying industry leading technology to create safe and effective workspaces.

The business continues to execute its technology-led strategy and in the past six months has received multiple awards.

www.mitie.com

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