Infrastructure specialist contractor M Group Services has bought Babcock’s Overhead Line Power business for £50m.
Following the acquisition, the business will be rebranded to form part of Morrison Energy Services, sitting alongside and enhancing existing electricity, gas and green energy capabilities.
In latest accounts to March 2021, the power business reported total revenues of £70m and pre-tax profit around £7m before allocated overheads.
The overhead line electric transmission and distribution business counts among its clients including National Grid, Scottish Power Energy Networks and Western Power Distribution.
Jim Arnold, Chief Executive M Group Services, said: “It is important for us to deliver sustainable growth both organically and through acquisitions and we are pleased to strategically enhance our capabilities with this acquisition which provides the means to accelerate our growth by delivering a greater breadth of electricity transmission services to our clients.
“The culture, capabilities and reputation that have become synonymous with this business make it a perfect fit for us. We are delighted to welcome David Maddocks and his team to M Group Services.”
David Maddocks, Director of Babcock Power, added: “I am extremely excited to be joining M Group Services. Our overhead line capability compliments the existing range of services and provides a solid platform to grow in a market that has great opportunity for expansion.”
This acquisition takes the total number of strategic acquisitions made by M Group Services to 15 since December 2016.