Aliter-backed Ipsum Group makes second bolt-on acquisition of Yorkshire business
As part of a strategy to create a national utilities and infrastructure services provider
Specialist investor maintains investment momentum in utilities sector following launch of its £92m support services fund
Ipsum Group Limited (“Ipsum”) a utilities and infrastructure service provider backed by Aliter Capital LLP (“Aliter”) today announced the acquisition of Specialist Power Engineering Contracts Limited (“SPEC”), a Wakefield-based specialist High Voltage (“HV”) engineering business. The value of the transaction has not been disclosed.
Ipsum, which is headquartered in Preston, was backed by Aliter in January 2017 and acts as the holding company for Aliter’s investments into the utilities and infrastructure support services sector. The investment in SPEC will enable Ipsum to broaden its specialist service offering and reach into the electricity sector; diversify its customer base; and expand its geographical footprint across the UK. The combined business will have revenues of c.£ 23m and approximately 175 staff.
This is the second investment that Ipsum has made since their Complete Asset Life Management Solutions Group (CALM) transaction in February 2017. Both deals form part of Ipsum’s wider strategy to create a leading national utilities and infrastructure specialist services provider with coverage across multiple sectors, including utilities, rail, highways, nuclear and renewable energy.
SPEC is a specialist HV engineering business that provides a range of critical services on HV switchgear and substations for clients with private networks. It has a significant number of maintenance contracts with blue-chip customers across the UK. Headquartered in Wakefield, SPEC has branches in Aldershot, Bromsgrove, Newcastle and Oxford and currently employs 89 people.
Greg Fernie, CEO of Ipsum Group, said: “We are delighted to be announcing the investment in SPEC, a highly-regarded business that is a great fit for Ipsum and we look forward to working alongside their highly-experienced management team, led by Ian Needham and Craig Wright. The investment will enable Ipsum to develop its service offering, customer base and geographic reach and is an important milestone in our plan to establish market leadership in the utilities and infrastructure services sector. It is also a great example of the benefits of partnering with the right investor – the Aliter team bring considerable experience of transforming regional businesses into successful national operators and their support has been invaluable this year.”
Greig Brown, Partner of Aliter and Chairman of Ipsum, said: “The investment strategy behind Ipsum is to create a modern and progressive utilities and infrastructure services consolidator that can deliver innovative and specialist services to clients wherever they are in the UK. Since incorporating the business in January 2017, Ipsum has made great strides in expanding its addressable market and specialist service offering through organic and acquisitive growth, as well as applying innovative technology to support our customers’ asset management requirements. The investment in SPEC is just the latest step in the growth plan and we are delighted to welcome their team to the Ipsum Group.”
The directors of SPEC will continue to run their operation and be involved in the day to day management of the collective business and remain as significant shareholders. Greg Fernie, Ipsum Group CEO, a seasoned utilities industry executive appointed by Aliter last year, will continue to be responsible for driving the strategic direction of the Group.