Mitie acquires engineering services company JCA for £31.5m

The Mitie Group has acquired engineering services and construction company JCA Engineering in a deal worth up to £31.5million.

The London-based group said the deal will include an initial payment of £21m and deferred payments of up to £10.5m over three years, dependent on performance.

JCA had a turnover of £71.8 million for the 12 months ended 31 December 2022 – an annual growth of 17 per cent.

Upbeat: Mitie announced the acquisition of JCA Engineering in a deal worth up to £31.5million

“JCA has 20 years’ experience delivering complex engineering projects across the UK and specializes in consultancy, design, construction and maintenance, with a particular focus on critical environments such as data centres, life sciences and healthcare,” Mitie said in a statement :

Mitie shares rose 0.82 percent to 98.50 pence in morning trade on Monday.

Phil Bentley, Mitie’s Group Chief Executive said, “We are delighted to welcome the team from JCA Engineering to Mitie.”

“The acquisition of JCA Engineering follows the Group’s strategy to invest in high-growth, high-margin companies, enhancing our project capabilities in the growing areas of energy efficiency, office equipment and critical environments.”

In June, Mitie announced record full-year sales after bolstering the company through contract wins, contract renewals and inflationary new contract prices.

Revenue reached a record £4.05 billion in the twelve months to 31 March, up from £4 billion a year earlier, while operating profit rose to £117 million from £72 million.

Ian Hodges-Jackson, Founder and Chairman of JCA Engineering said: “I am proud of my team and the skills we have built at JCA Engineering over the past 20 years, along with our reputation as prime contractors in critical environments.”

“Given Mitie’s access to a wide range of customers and its ability to fund accelerated growth, I am very excited for the next phase of JCA Engineering’s development.”