MITIE Acquires Utilyx
09 January 2012
MITIE Group PLC
MITIE acquires leading energy specialist Utilyx
MITIE Group PLC (“MITIE”), the strategic outsourcing and energy services company, is pleased to announce that it has acquired the leading energy and carbon management specialist Utilyx Holdings Limited (“Utilyx”).
Utilyx provides a number of services relating to its clients’ energy demands including strategic planning, procurement and risk management, all of which are designed to manage the business impact of energy consumption and rising energy costs.
The acquisition of Utilyx will complement and enhance MITIE’s existing CarbonCare energy services capabilities. The energy services market is significant for MITIE, with 35% of the Group’s revenues derived in this area. MITIE is ranked as the second largest energy services company in the UK, providing a full range of integrated services that help its clients manage their energy use and carbon footprint. MITIE’s energy services proposition supports all the key energy issues facing businesses and public sector organisations across the UK. These include business continuity through security of energy supply, value through cost reduction, reduction of carbon emissions and renewable energy.
As a leading consultant on corporate carbon and energy strategy, Utilyx counts a range of major UK energy users among its clients, from the industrial, commercial and public sectors. Utilyx has excellent high-level working relationships with numerous blue-chip companies including Scottish Water, Iceland and McDonald’s. It has excellent strategic relationships across the fast-growing energy services market and also provides specialist services to generators and developers of renewable energy projects.
Established in 2000, Utilyx purchases a significant proportion of the UK corporate energy market on behalf of its clients. The business has a deserved reputation for excellence and innovation, having introduced a number of new products and concepts to the market, including flexible risk managed electricity purchasing, open-book agreements and end-user Power Purchase Agreements.
Utilyx has annualised revenues of over £7m and is well placed to support MITIE’s progress in the growing energy services market in the UK. The total consideration for the acquisition will be up to £16.2m. Initial consideration of £15m was paid in cash on completion and the balance (capped at a maximum additional payment of £1.2m) will be paid in cash, dependent on future business performance. The proforma EBITDA of Utilyx is £1.7m and it is expected the acquisition will be earnings neutral in the first year of ownership.
Ruby McGregor-Smith CBE, Chief Executive, MITIE Group PLC, commenting on the transaction, said: “We are delighted to have acquired Utilyx. There is no doubt that the need for all organisations to use fewer natural resources is changing our marketplace. Energy management is integral to what we do and this acquisition forms part of our considerable investment to further develop MITIE’s energy services capability.
“We are very pleased to welcome the management team and all the employees to MITIE.”
Chris Bowden, Chief Executive Officer of Utilyx added: “We are excited by the opportunity this presents for us and our clients. The energy sector is fast-moving and by bringing together our expertise and experience, we will be in an even stronger position to help our clients meet the challenges and opportunities that the new low-carbon economy provides.”
For further information, contact:
Group Corporate Affairs Director
D: +44 20 3123 8673
M: +44 7979 701006
Head of Investor Relations and External Affairs
D: +44 20 3123 8675
M: +44 7979 784488
Notes for editors
What is MITIE?
We’re the strategic outsourcing and energy services company. What does that mean in practice? We manage facilities, energy and properties for our clients across the UK and beyond.
We work with our clients in three ways; some take full advantage of our whole range of expertise, others may only need one aspect of what we do:
Strategy and consultancy
+ Facilities and energy management
+ Service delivery
Our strategic input can add value at the highest level by helping clients to manage their assets, while our practical management expertise can save customers money and reduce their carbon emissions. We work with a vast number of clients in every industry across both the public and private sectors and deliver the broadest range of services that can be found in one place: from integrated facilities management to engineering maintenance to lifecycle energy management and much more.
There’s a lot more to MITIE than you probably think. We’re a big company with big ambitions – a leading FTSE 250 support services business, with more than 62,000 people, revenues of £1.9bn, and a reputation for being the best.
Visit us at www.mitie.com