Mitie acquires Custom Solar

Mitie Group is to acquire Custom Solar, which specialises in the development, design, installation and maintenance of solar power systems for public and private sector clients.

The transaction comprises an initial payment of £8M, with deferred payments in aggregate of up to £4.4M by the end of FY25, linked to performance targets. Custom Solar will be acquired cash free, debt free, with a normalised level of working capital. The transaction is expected to complete on 30 June and will be funded through existing facilities. For the 12 months ended 31 March 2022, Custom Solar generated revenues of £15M and profit before tax of £2M and had gross assets of £7M. Custom Solar is expected to be accretive to earnings in the first 12 months of ownership.

Mitie says that with UK solar targeted to rise from 14GW to 40GW by 2030, it will be able to fill a gap in the market for truly integrated solar solutions, building on its expertise in upgrading the electrical infrastructure and providing grid connections to support the UK’s decarbonisation agenda. Mitie recently acquired Rock Power Connections which specialises in high voltage electricity grid connections, electrical infrastructure upgrades and EV charging installations.
Simon Venn, Managing Director, Technical Services, Mitie, said: “Custom Solar’s expertise in large scale commercial solar deployments, combined with Mitie’s high voltage connection and project management expertise, will enable us to offer end-to-end renewable power generation at scale. With our client base including national brands, public sector organisations and critical infrastructure providers, this is yet another element of our support to help decarbonise Britain.”

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