The security risk and business resilience division of MITIE’s Total Security Management business has a significant presence in the defence and aerospace sector. Joining ADS will further the business’ access to technical expertise and develop its experience in this important market.
From MITIE’s point of view, membership will provide exposure to the network of ADS members and a greater understanding of the issues and priorities for organisations within the aerospace, defence, security and space sectors.
ADS was formed by the merger of the Association of Police and Public Security Suppliers (APPSS), the Defence Manufacturers Association (DMA) and the Society of British Aerospace Companies (SBAC) in October 2009. ADS also encompasses the British Aviation Group (BAG).
On the acquisition trail
Meanwhile, parent company MITIE Group plc has acquired the leading energy and carbon management specialist Utilyx Holdings Limited.
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.
Security of energy supply
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 the 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 which are based in the industrial, commercial and public sectors.
Utilyx boasts excellent high-level working relationships with numerous blue chip companies including Scottish Water, Iceland and McDonald’s. It has energised 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 GB pound 7 million 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 GB pound 16.2 million. An initial consideration of GB pound 15 million was paid in cash on completion and the balance (capped at a maximum additional payment of GB pound 1.2 million) will be paid in cash, dependent on future business performance.
The proforma EBITDA of Utilyx is GB pound 1.7 million and it’s expected the acquisition will be earnings neutral in the first year of ownership.
Developing energy services capabilities
Ruby McGregor-Smith CBE, the chief executive of MITIE Group plc, has commented on the deal.
“We are delighted to have acquired Utilyx,” explained McGregor-Smith. “There’s 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.”
MITIE’s leader concluded: “We are very pleased to welcome the management team and all of the employees to MITIE.”
Chris Bowden, chief executive at 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.”
