H.I.G. Capital, a global alternative investment firm with more than $50 billion of equity capital under management, acquired CPS Building Services, a UK provider of mechanical and electrical (M&E) services, from its founder. CPS’ current managing director, Liam Connelly, will reinvest alongside H.I.G. The financial terms of the transaction have not been disclosed.
CPS provides installation and maintenance services across heating, cooling, ventilation and electrical systems to clients in the healthcare, life sciences, defense and education end-markets. The business has developed a strong reputation for high-quality service provision in its East Anglia home market. H.I.G., together with the management team, aims to continue CPS’ track record of organic growth with a particular focus on growing its electrical and maintenance offerings. The existing management team of CPS will remain in place.
H.I.G. intends to use CPS to form the core of a wider technical building services group by acquiring businesses active in fire protection, water and pumps, lifts maintenance, access and security and associated compliance services. H.I.G. is partnering in this effort with Jonathan Simpson-Dent who will take the role of executive chairman of the group. Several active acquisition discussions are currently underway.
“This is an exciting new chapter and testament to the commitment of the team to serving our clients and building the CPS business,” Connelly said. “Together with H.I.G., our joint vision will create a unique range of essential building services and expertise that will benefit our clients.”
“Liam and his team have built a very impressive business at CPS, one that is focused on delivering quality service to its customers and has an unparalleled reputation in its local market,” Simpson-Dent said. “I’m excited to be working with Liam on the next phase of growth at CPS and driving expansion into associated service lines through M&A to create a one-stop shop for customers of technical building services.”
“We are very excited to be partnering with Liam, Jonathan and the CPS team to build on the company’s track-record of success,” John Harper, head of the H.I.G. Europe lower middle market LBO team in London, said. “CPS’ reputation for exceptional service and high-quality delivery has stood out to us since our first meeting with the company. We look forward to working with the company to acquire additional technical building services offerings to complement CPS by leveraging H.I.G.’s deep M&A expertise.”
