Investment firm H.I.G. Capital has acquired London M&E specialist Phoenix ME in a deal that will provide the contractor with additional resources to pursue its growth strategy across the UK and Europe.
Phoenix ME CEO Lee Compton will reinvest alongside H.I.G. and the company’s existing management team will remain in place following the acquisition. Jim Arnold, a former CEO of M Group Services and director at Morrison Utility Services, will join Phoenix ME as chairman, working with the management team and H.I.G. to support the company’s next phase of growth.
The acquisition comes after Phoenix reported a significant increase in profits and set its sights on reaching £400m in turnover. Data centres remain Phoenix’s largest market sector, alongside commercial, infrastructure and life sciences projects, with demand across these areas continuing to drive its expansion.
H.I.G. said the investment “provides Phoenix ME with the resources to accelerate its growth strategy, further strengthening its position in high-growth sectors while expanding its presence across the UK and Europe. The company intends to build on its strong customer relationships and pursue organic growth opportunities and strategic project procurement.”
Phoenix ME’s focus on technically complex M&E work has positioned it to benefit from continued investment in data centres and other infrastructure-intensive sectors. The company’s work spans electrical and mechanical engineering services for major contractors and end customers, with its geographical footprint now extending across the UK and four European countries.
Lee Compton, CEO of Phoenix ME, said: “Phoenix ME has a long track record of quality and reliability and is a trusted partner for our sector’s largest and most reputable contractors and end customers. We are excited for the future and believe that by working closely with H.I.G., we can continue to deliver exceptional outcomes for our clients in our fast-growing end-markets.”
John Harper, managing director at H.I.G. Capital, added: “Phoenix ME’s end markets will enjoy rapid growth over the coming years. We are excited to partner with the Phoenix ME team to build on their already impressive track record of delivering high-value engineering services on these complex assets.”
The investment is expected to support Phoenix ME’s ability to pursue larger and more complex programmes while maintaining the management structure and client relationships that underpin its existing business. Terry Hussey, board director at Phoenix ME, said the transaction would not change the teams working directly with clients.
“Our clients will be dealing with the same teams tomorrow as they were yesterday. What changes is what we can take on.
“We started in 1931 as an electrical contractor and now work across the UK and four European countries, and I see no reason to stop there. This gives us the resources and means to commit to larger and more complex programmes than we have ever taken on.”
