In a strategic move to bolster its portfolio, CVC Capital Partners Plc has announced its agreement to acquire UK-based infrastructure contractor M Group Services. This acquisition, expected to finalize in the third quarter of this year, represents another significant investment for the private equity firm. While the official statement did not reveal financial specifics, sources indicate that the deal values M Group at just over £1 billion ($1.3 billion).
M Group Services operates across various essential sectors including water, energy, transport, and telecommunications in both the UK and Ireland. The company is known for its comprehensive range of services, from design and installation to maintenance. Its impressive client roster features major industry players such as Severn Trent Plc, United Utilities Group Plc, Virgin Media, and National Grid Plc, highlighting its critical role in supporting infrastructure development and maintenance.
The acquisition sees CVC purchasing M Group from PAI Partners, another prominent buyout firm. CVC is utilizing capital from its Fund IX, which amassed €26 billion ($28 billion) when it closed last year. This fund allocation underscores CVC’s commitment to expanding its investments in key infrastructure sectors.
PAI Partners, managing over €26 billion in assets, initiated the sale process for M Group in 2022, with the business originally valued at approximately $2 billion. In a competitive bidding landscape, CVC emerged victorious among the final contenders, which included Apollo Global Management Inc. and Searchlight Capital Partners.
The sale of M Group marks another successful exit for PAI Partners, which has been active in returning capital to its investors. Over the past twelve months, PAI funds have distributed about €2.3 billion, bolstered by transactions such as the sale of in-vitro diagnostics manufacturer ELITech to Bruker Corp. Furthermore, the acquisition process was facilitated by leading financial advisers, with Deutsche Bank AG and Citigroup Inc. representing PAI Partners, and Evercore Inc. advising CVC.