Mitie acquires JCA Engineering

MITIE Group PLC

04 September 2023

 

 

4 September 2023

Mitie Group plc

LEI number: 213800MTCLTKEHWZMJ03

 

Mitie acquires leading critical environment project designer and engineering principal contractor, JCA Engineering

Mitie Group plc ('Mitie' or 'the Group') announces the acquisition of leading critical environment project designer and principal contractor, JCA Engineering ('JCA'), for a maximum cash consideration of £31.5m[1] (comprising an initial payment of £21m and deferred payments of up to £10.5m over three years, linked to performance).

Based in Stevenage, JCA has 20 years of experience in delivering complex engineering projects across the UK, specialising in consulting, design, build and maintenance, with a particular focus on critical environments such as data centres, life sciences and healthcare sectors.  The company's strengths are in mechanical and electrical works, asset upgrades and replacements, and office fitouts.

JCA also holds design patents for cooling systems in data centres, delivering the highest levels of performance and energy efficiency. The company's 'end-to-end' approach to project delivery, combined with longstanding relationships across the public and private sectors, will enhance Mitie's growing projects capabilities as a principal contractor to its clients.  JCA will gain access to Mitie's extensive customer base in our Communities and Central Government & Defence divisions, as well as those in the private sector.

For the 12 months ended 31 December 2022, JCA delivered revenue of £71.8m (17% yoy growth) and EBITDA of £5.1m (4% yoy growth).

The acquisition will be funded from Mitie's existing facilities.  

Phil Bentley, Group Chief Executive, Mitie, said:

"We are delighted to welcome the JCA Engineering team to Mitie. The acquisition of JCA Engineering follows the Group's strategy to invest in high growth, high margin companies, enhancing our projects capabilities in the growth areas of energy efficiency, office fitouts and critical environments."   

Ian Hodges-Jackson, Founder and Chairman, JCA Engineering said:

"I am proud of my team and the capabilities we have built at JCA Engineering over the past 20 years, alongside our reputation for delivering as principal contractor in critical environments. Given Mitie's access to a wide range of clients and its ability to finance faster growth, I'm very excited about the next phase of JCA Engineering's development."

-ENDS-

For further information

Kate Heseltine Group IR Director	M: [phone]	E: [e-mail]
Claire Lovegrove Director of Corporate Affairs	M: [phone]	E: [e-mail]
Richard Mountain FTI Consulting	M: [phone]

About Mitie

Founded in 1987, Mitie's job is to look after places where Britain works, and it is the leading facilities management company in the UK. We offer a range of services to the public sector through our Central Government & Defence and Communities (Healthcare, Education, Campus & Critical and Care & Custody) divisions. Our Technical Services (Engineering Services, Energy, Water and Real Estate Services) and Business Services (Security, Cleaning, Landscapes, Spain and Waste) divisions serve private sector customers in areas such as Financial & Professional Services, Industrials, Retail and Transport, and increasingly the public sector.

Mitie employs 64,000 people. We take care of our customers' people and buildings, through the 'Science of Service', and we are transforming facilities to be more flexible, safe, sustainable, and attractive to all. Mitie continues to execute its technology-led strategy and in the past twelve months has received multiple awards and validation for its ambitious near and long-term science-based emissions reduction targets from the Science Based Targets initiative (SBTi). Find out more at www.mitie.com.

Mitie Projects employs 2,500 colleagues and delivers a full suite of engineering services, including mechanical and electrical, fire and security hardware, decarbonisation, renewable energy installation, electrical connections, and telecoms infrastructure. 

About JCA Engineering

Stevenage based JCA Engineering is an engineering services-led principal contractor employing 200 colleagues. JCA designs, builds and maintains buildings that have a high degree of mechanical and electrical engineering systems, such as data centres. Specific services include Critical Plant replacement, Data Centre engineering, Critical Environment engineering, Office Fitouts, and Infrastructure Engineering (www.jca.co.uk).

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[1] On a cash free, debt free basis with a normalised level of working capital. The acquisition includes £23m of cash or cash equivalents, for which Mitie will pay an equivalent amount to receive.

 

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