Building one of the UK’s leading essential infrastructure services providers
Overview
In July 2018, PAI Partners completed the acquisition of M Group Services, the UK’s largest provider of essential infrastructure services and solutions. The company provides services to, and partners with, major essential infrastructure providers in the water, energy, telecom and transport sectors.
PAI’s decision to acquire M Group Services was based on its market-leadership position in highly regulated end markets, defensive business model with high revenue visibility, consistent financial track record, and its position as a clear buy-and-build platform in a fragmented market.
Under PAI’s ownership, the business scaled significantly: total revenues increased from £1 billion in 2018 to over £2 billion in 2024, the order book doubled in size, and the company successfully delivered on a strategy to broaden its service offering and client base.
The success of this strategy has led to a more diversified and resilient business model, deeper client relationships, and strong platform from which the company can continue to grow. The sale of M Group Services to CVC completed in September 2024.
Investing in the Real Economy
A classic example of a PAI investment in the Real Economy, the acquisition of M Group Services capitalised on sector trends amplified by structural market shifts, including the need to maintain ageing UK infrastructure assets, decarbonisation, and the development of next-generation infrastructure.
PAI’s deep knowledge of a complex asset, track record in Business Services, strong existing relationship with management, and network of industry advisers allowed the firm to build further conviction in the investment thesis and create a strong, trust-based relationship.
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2.0x+
Growth in order book
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2.4x
EBITDA growth
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14 years
Average customer relationship
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M Group Services’ transformation journey
During PAI’s ownership, M Group Services experienced significant growth across revenue, EBITDA and cash flow, with clear emphasis on enhancing the quality and scale of the order book.
The group successfully delivered on its organic growth plan, diversifying and strengthening historically smaller divisions. The group also accelerated its M&A strategy, acquiring and successfully integrating 14 complementary businesses in six years, focusing on more technical and higher-margin competencies to add real depth and breadth of capabilities.
With PAI’s support, the company refreshed and strengthened its management team, with the appointment of a new CEO and CFO, and the establishment of a new COO role. These appointments were complemented by a more efficient organisational structure and operating model following extensive investment to strengthen M Group Services’ platform and enhance its IT infrastructure.
When the company was sold to its new owners, M Group Services had become the leading provider of essential infrastructure services and solutions for clients across the transport, energy, water and telecom sectors in the UK and Ireland.
Creating a global ESG leader
After initiating M Group Services’ ESG efforts and team, PAI supported the company in advancing its sustainability credentials, integrating ESG principles into the core of the business and positioning the company as a sustainability transition enabler for the future. Today, M Group Services is essential to the UK in delivering Net Zero aspirations and is a global ESG leader with a top 1% Sustainalytics global ranking, which is widely considered to be best-in-class.
