Worcester-based Rock Power sold to Mitie
Rock has nationwide coverage and specialises in the design and installation of new high voltage electricity supplies, the renewal of industrial and commercial customers' electrical assets up to 132kV, and the EV charging installation for non-residential blue-chip customers.
Mitie has already delivered several thousand EV charging points for a broad range of customers and end-users. With the market shifting towards high voltage chargers, and with the increasing demand for new connections into the National Grid, we are confident that the acquisition of Rock will significantly enhance Mitie's ability to offer a truly end-to-end solution to meet our clients' net zero goals.
The transaction consideration comprises an initial payment of £10 million, with two deferred payments in aggregate of up to £4.5 million by the end of FY23, linked to stretching performance targets. Rock will be acquired cash free, debt free, with a normalised level of working capital and will be accretive to earnings in the first 12 months of ownership. The acquisition will be funded from existing facilities.
For the year ended 31 December 2020, Rock reported revenue of £7.4 million and operating profit of £0.4 million. Performance so far this year has been well ahead of that achieved in 2020, with significant growth expected to continue into the future, based on both a current order book which is underpinned by long-term framework agreements, and access to Mitie's clients.
Rock co-founders Matt Crampton and Kev Sankar will both join Mitie to drive the business forward.
Phil Bentley, Chief Executive Officer, Mitie, said: "Decarbonising our energy system is an absolute imperative for the UK. As we expand the support Mitie Energy gives our clients, the acquisition of Rock will allow Mitie to capture a greater share of the fast growing High Voltage electric vehicle charging market, and is in line with our strategy of investing in high growth, high return businesses within the energy space."
Rock Power Connections is an electrical engineering company which works on the distribution grid and undertakes electrical connections. Based in Worcester, it works nationwide providing electrical connections on all scales; from large prestigious developments through to smaller connections for the rollout of Electric Vehicle chargers.