London, UK, 27 June 2024. CVC, one of the world's leading private equity firms, is pleased to
announce the acquisition of M Group Services, the UK’s largest provider of essential
infrastructure services and solutions. CVC Fund IX will acquire the business from PAI Partners,
a pre-eminent private equity firm. The transaction is expected to complete in Q3 2024.
Headquartered in the UK, M Group Services, which supports and partners with major essential
infrastructure providers in water, energy, telecom and transport by providing recurring repair
and maintenance services, was formed in 2016 from Morrison Utility Services. The business has
over 100 years of heritage, employs more than 11,000 people and operates from over 216
locations nationwide.
The business has scaled significantly under PAI’s ownership: total revenues have increased
from £1 billion in 2018 to over £2 billion today, the order book has doubled in size, and the
company has successfully delivered on a strategy to broaden its service offering and move up
the value chain. In support of this strategy, the Group has acquired and successfully integrated
14 complementary businesses since 2018.
Leveraging PAI’s deep sector expertise in Business Services, the Grouphas also benefitted from
extensive investment to strengthen its platform, improving operational functions and
processes, enhancing its IT infrastructure and advancing its sustainability credentials, which
are consistently recognised as industry leading. The success of this strategy has led to a more
diversified and resilient business model, deeper client relationships and a strong platform from
which M Group Services can continue to grow with the support of its new owners.
CVC is investing out of Fund IX, its most recent fund that closed at €26 billion in 2023,
becoming the largest private equity fund ever raised, and brings substantial experience of
investing in and growing UK businesses. CVC will work closely with M Group Services’
management team to accelerate its organic growth and development in this next phase,
complemented by further strategic value-enhancing M&A. Recognising the long-term
relationships with clients, employees and suppliers that underpin M Group Services’
successful track record, CVC is committed to upholding the Group’s commitment to safety,
client-focused delivery, sustainability and innovation.
Andrew Findlay, Chief Executive of M Group Services, said: “We would like to thank PAI
Partners for their strong support and commitment to our growth since 2018. We are delighted
that CVC has decided to support our clear and ambitious plan to continue to grow and deliver
at pace, built on our solid market-leading foundations. We look forward to working in
partnership with CVC to deliver our future plans. This is great for our people, our clients and
their customers.”
Dominic Murphy, Managing Partner and Co-Head of the UK Team at CVC and Tim Gallico,
Partner at CVC, said: “M Group Services is a leader in an attractive market growing on the back
of structural trends linked to ageing infrastructure, decarbonisation initiatives and technology
transitions. We are delighted to support its management team in this exciting next phase of its growth and development.”
Colm O’Sullivan, Partner & Head of the UK Team at PAI, said: “We are delighted to have
supported M Group Services over the last six years and to have guided its transformation into
the leading provider of essential infrastructure services in the UK – a classic example of PAI
investing in the Real Economy. Thank you to the Group’s management team for the excellent
partnership. With a well-invested platform, extensive service offering and clear leadership in
sustainability, M Group Services is well placed to continue its successful journey in the years
ahead.”
Deutsche Bank acted as lead financial adviser to PAI, with Citi also acting as financial adviser.
Evercore acted as financial adviser to CVC.