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Friday, 22 July 2016 08:02

Morrison Utility Services bought by global private equity firm

Morrison Utility Services, the leading provider of utility infrastructure services in the United Kingdom, has today announced an agreement to be acquired by First Reserve, a leading global private equity and infrastructure investment firm exclusively focused on energy, including utilities.

Current owners Bregal Capital and Motion Equity Partners acquired MUS in March 2008 from Anglian Water Group, investing alongside company management.

With nearly 4,000 direct employees, MUS is one of the UK's leading providers of infrastructure services to utilities, operating in the electricity, gas, water and telecommunication sectors. Operating under long-term contracts, MUS specialises in ensuring that utilities' infrastructure assets are continuously maintained, enhanced, expanded and renewed.

Commenting on today's announcement, Charles Morrison, Chief Executive Officer at MUS, said:

"MUS has provided high quality services for over 27 years, whilst developing successful and long term relationships with our clients. As an organisation we pride ourselves on the ability to deliver safety, innovation and a quality service placing our clients' customers at the heart of our business. 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."

Edmund Lazarus, Managing Partner of Bregal Capital, and Patrick Eisenchteter, Managing Partner of Motion Equity Partners, commented:

"It has been a pleasure supporting Charles and the team at MUS.  Since our investment in the company, the team has achieved a huge amount, established the business as a utility market leader in all its key sectors and successfully grown revenues to over £600 million.  This successful investment adds to our strong track record of working in partnership with management teams to create value.  We wish the team every success as they continue to grow their company."

Alex Krueger, Co-CEO and President of First Reserve, said MUS represents an opportunity to invest in a diversified and resilient business which is not directly exposed to commodity pricing.  First Reserve is expecting the company's long-term revenue visibility, defensible margins and ability to generate free cash flow will further diversify its private equity portfolio.  

The transaction is subject to European Commission antitrust approval and is expected to close by November 2016.

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