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CVC agrees to acquire M Group Services from PAI Partners



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.

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