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 working relationships with 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.
Established in 2000, Utilyx purchases a significant proportion of the UK corporate energy market on behalf of its clients. It has annualised revenues of over Â£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 Â£16.2m. Initial consideration of Â£15m was paid in cash on completion and the balance (capped at a maximum additional payment of Â£1.2m) will be paid in cash, dependent on future business performance.
The proforma EBITDA of Utilyx is Â£1.7m and it is expected the acquisition will be earnings neutral for MITIE in the first year of ownership.
Ruby McGregor-Smith, Chief Executive, MITIE Group, 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."
At 12:29pm: [LON:MTO] MITIE Group share price was 0p at 270.9p
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