PMSI supports NG Bailey’s strategic acquisition of Engineering Solutions Group
The acquisition, which supports NG Bailey’s growth strategy, will strengthen its existing expertise in infrastructure delivery, as well as give it greater access to the water infrastructure market. The current water industry investment cycle (AMP8) contains around double the investment of the previous cycle (at £104bn over 5 years), targeting ongoing infrastructure upgrades and investment in innovation, presenting significant growth opportunities for the Leeds-headquartered business.
ESG, which is headquartered in Sutton-In-Ashfield, has been operating since 1989. At its heart sits ECS Engineering Service (ECS), ESG’s largest and most established business, supported by three complementary group companies, with expertise covering mechanical and electrical engineering, specialist steel and composite fabrication, civil engineering, and the supply of advanced water control products via exclusive European partnerships. Its key customers include the Environment Agency, Severn Trent Water, Anglian Water, Welsh Water and Yorkshire Water.
As part of NG Bailey, the ESG existing management team will continue to run the £30m turnover business under the existing brands, with the existing highly skilled workforce. It will also benefit from joining NG Bailey’s Built Environment division, offering opportunities to engage with the Group’s existing portfolio of clients across engineering, facilities services and electric vehicle solutions.
PMSI provided CDD in support of the transaction, including an assessment of the UK water sector’s market tailwinds, analysing the impact that the significant step-change in investment across AMP8 will have on ECS’s addressable market. Our work also demonstrated ECS’s attractive positioning within this market, supported by its position on strategic Environment Agency and Water Company frameworks, providing ECS a platform for further growth in a fast growing market.
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