Bristol-based MITIE has taken over energy and carbon management specialist Utilyx in a deal worth up to £16.2m. Utilyx delivers strategic planning, procurement and risk management to a range of major UK energy users and its acquisition will complement and enhance MITIE's existing CarbonCare energy services business which already accounts for 35% of the group's revenues.
MITIE, a leading FTSE 250 support services business with more than 62,000 employees and revenues of £1.9bn, is already the UK's second largest energy services company providing a full range of integrated services that help its clients manage their energy use and carbon footprint. This includes business continuity, 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 clients include numerous blue-chip companies including Scottish Water, Iceland and McDonald's. It has strategic relationships across the fast-growing energy services market and also provides specialist services to generators and developers of renewable energy projects.
Utilyx purchases a significant proportion of the UK corporate energy market on behalf of its clients. The business, established in 2000, buys a significant proportion of the UK corporate energy market on behalf of clients and has introduced new products and concepts to the market, including flexible risk managed electricity purchasing, open-book agreements and end-user Power Purchase Agreements.
It has annualised revenues of more than £7m and MITIE has paid £15m paid in cash for it with the balance – capped at a maximum additional payment of £1.2m – also to 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.
MITIE chief executive Ruby McGregor-Smith said: "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."
At Utilyx, chief executive Chris Bowden 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."
