Facilities and buildings management leader Mitie has bought PV installers Custom Solar, it told investors today.
The fee for the company based in Chesterfield, Derbyshire, will rise from an immediate £8 million to £12.4 million by 2025, depending on performance targets. It is debt-free.
With demand for sustainable electricity set to increase skyrocket, UK solar power generation is targeted to triple to 40GW by 2030, up from current national capacity of 14GW.
Mitie’s strategy for clean PV-generated power on its clients’ roofs, is to deliver integrated solutions, building on its experience of upgrading clients’ electrical infrastructure and providing grid connections.
Custom Solar’s managing director Matthew Brailsford will join its new parent.
In the trading year to March, his firm had sales of £15m, gross assets of £7m and recorded pre-tax profits of £2m. Mitie expects its new appendage to add to earnings within its first 12 months of ownership.
Simon Venn, Mitie’s managing director for technical services welcomed the deal.
“Our acquisition of Custom Solar continues Mitie’s strategy of investing in high growth, high return businesses within the energy and decarbonisation market to help our customers accelerate their path to Net Zero.
“Custom Solar’s expertise in large scale commercial solar deployments, combined with Mitie’s high voltage connection and project management expertise, will enable us to offer end-to-end renewable power generation at scale.
“With our client base including national brands, public sector organisations and critical infrastructure providers, this is yet another element of our support to help decarbonise Britain, ” Venn concluded.
