Fusion Corporate Partners are pleased to announce our first deal of 2012. The sale of leading energy and carbon management specialist Utilyx Holdings Limited to MITIE Group PLC, the strategic outsourcing and energy services company.
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.
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 .
Paul Kelly, Director at Fusion, said “We were delighted to work with Chris and his team at Utilyx. They have built a great business and the fit with MITIE is excellent. The energy services sector has become an important part of the Fusion business. This our sixth energy services deal. Besides private equity interest, we are seeing an increase in acquisition interest from large energy management, FM, environmental services and building services companies. We expect to continue to be active in the sector for some time to come.”
Previous Fusion energy services deals:
- Utility Masters Limited sold to M&C Energy Group
- Encore International sold to M&C Energy Group
- John Hall Associates sold to EnergyQuote
- EIC sold to Broadfern
- Energy Information Centre sold to Euromoney Institutional Investor PLC
UK, London & Bristol
- MITIE acquires access and disability consultancy Direct Enquiries Posted on December 8, 2011
Other Fusion Deals:
Media and Information
- A Fusion Deal: FMB Consultants sold to Argus Media Posted on June 10, 2011
- www.Bit-Tech.net, the leading PC customisation online community and review site, sold to Dennis Publishing
- DMG Information sold Hobsons, its pan-European corporate recruitment print, web, event and market research operations, to Group GTI
- Hedgefund Intelligence, global B2B newsletter publishers and online data provider to the hedgefund sector, sold to Euromoney Institutional Investor
- www.digitalspy.co.uk the UK’s largest independent entertainment news website sold to Hachette Filipacchi UK
- www.CarDesignNews.com, a leading international B2B community website sold to Ultima Media
- MyHobbyStore.co.uk has acquired Model Collector and Stamp Magazine from IPC Media
- Trusted Reviews the UK’s premier electronic product review website sold to IPC Media
- Kable Ltd, the B2B online market intelligence provider and event organiser for the ICT sector sold to Guardian News & Media
- Petrolheads, the leading sports car enthusiast community and classified website, sold to Haymarket Publishing Group
- Visordown Ltd, owner of the leading UK motorcyclist community website www.visordown.com sold to Magicalia Ltd
- Euromoney Institutional Investor PLC sold Raven Fox Ltd, publisher of B2B journal Duty Free News to The Metroplolis Group
- Magicalia, the leading consumer special interest community website publisher, sold to Exponent Private Equity
- Euromoney Institutional Investor PLC sold Atalink Ltd, a specialist contract publisher, to Ten Alps PLC
- Global Professional Media Ltd, publisher of leading B2B weekly Legal Week, sold to Incisive Media PLC
- eLitigation business Legal Inc is acquired by Grant Thornton
- Zig Zag Holdings, the leading UK independent TV Producer of factual and factual entertainment shows, sold to Banijay Entertainment
- UKIP Media & Events sold its aviation exhibition division, incorporating Aircraft Interiors Expo, to Reed Exhibitions
- Telcap Ltd, a leading B2B events and publshing business, sold to Euromoney Institutional Investor Plc