Thomson Snell & Passmore is delighted to confirm completion of the sale of KH Engineering Services (KHES), one of the UK’s leading providers of mechanical and electrical engineering for the rail and transport sector.
KHES was acquired by M Group Services (http://www.mgroupservices.com/), a £1.2b a year turnover group and leading service provider to essential infrastructure markets in the UK and Ireland which owns utilities, transport, telecom, and data divisions. M Group Services is backed by leading pan-European private equity firm, PAI Partners.
KHES will retain its brand identity and continue to operate as a standalone, specialist services business. KHES will form part of M Group Services’ Transport Division that includes; Dyer & Butler, a multidiscipline engineering services specialist focused on essential infrastructure including airports, railways and highways; and Antagrade Electrical, one of the UK’s leading providers of specialist railway electrification infrastructure services.
KHES was originally founded by Chairman, Kevin Hollingsworth, back in 1991. Its current entity, KH Engineering Services Ltd, was established in 2015 and has grown into a £14m turnover business with a client base including Govia Thameslink Railway (GTR), Greater Anglia, Network Rail, Abellio East Anglia, London & South Eastern Railway, The Go-Ahead Group, Southern Railways and Transport for London (TfL).
The senior management team, led by managing director, Darren Bates, will be staying on in the business to cement KHES’ leading market reputation and embark on the next stage of its strategic growth plans. He said of the acquisition, “We are absolutely delighted to be aligning ourselves with M Group Services. Their understanding of our vision has been supported through the whole process and my fellow directors and I truly believe, with their sector knowledge, wide geographic footprint and professionalism our controlled sustainable, growth plan will be greatly enhanced.”
Corporate lawyer, advised the shareholders of KH Engineering Services’ holding company, KH Engineering Holdings Limited, on the terms of the sale as well as the senior management team on the terms of their future relationship with KHES and M Group Services. They were supported by Nick Hobden and Ben Stepney on the employment aspects and Oliver Butler, on the property elements of the transaction.
Thomson Snell & Passmore said: “We are delighted that this sale has completed. Alex and I started engaging with KHES back in September last year about a potential sale and it has been a pleasure dealing with Kevin and the rest of the team ever since. It has been equally rewarding working alongside our clients’ advisors, RSM and Barnes Roffe, as well as M Group’s legal advisers, Pinsent Masons, to get this sale over the line in just one month from signing Heads of Terms.”
Natalie Ord, Chris Harrop and Josh Woodage in RSM’s corporate finance team helped prepare and market KHES for sale and provided transaction support. Paul Hughes and Jamie Hall at local Kent firm, Barnes Roffe LLP, advised the shareholders on the financial and tax elements of the transaction.
M Group Services’ advisors included Pinsent Masons LLP on the legal aspects of the transaction, Deloitte on tax and PwC on the financial side.