A private equity firm has agreed to buy Morrison Utility Services (MUS) for an undisclosed sum.
The buyer is First Reserve, a private equity and infrastructure investment firm focused on energy, including utilities.
MUS works with companies in the electricity, gas, rail, water and telecoms sectors to provide on upgrades and maintenance including electricity substations, water and gas pipes. It has just signed a £250M three-year extension to its contract with Yorkshire Water for repair and maintenance activities.
MUS last changed hands in 2008 when it was bought from Anglian Water Group by Bregal Capital and Motion Equity Partners.
MUS chief executive Charles Morrison said: “The growth opportunities in our markets are significant on the back of continued long term investment in the UK’s infrastructure. We thank Bregal Capital and Motion Equity Partners for the great support they have provided to MUS since 2008 and very much look forward to forging a strong partnership with First Reserve during our next phase of growth.”
First Reserve president Alex Krueger added: “MUS represents an opportunity to invest in a diversified and resilient business which, in our view, is not directly exposed to commodity pricing. We expect the company’s long-term revenue visibility, defensible margins and ability to generate free cash flow will further diversify our private equity portfolio. First Reserve is pleased to be able to continue to identify, diligence and execute on what we believe are attractive opportunities to invest across the global energy value chain.”
The transaction is subject to European Commission antitrust approval and is expected to close by November 2016.