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Aurelius buys SSEC

Aurelius has acquired SSE Contracting Limited from SSE Plc.

Aurelius has acquired SSE Contracting Limited from SSE Plc. The value of the deal is 27.5 million pounds. Based in the UK and Ireland, SSEC provides mechanical, electrical, rail, street lighting and high-voltage engineering services to install and maintain key infrastructure.

PRESS RELEASE

Munich/London, April 1, 2021 – AURELIUS today announces the acquisition of SSE Contracting Limited (“SSEC”) from SSE Plc in a complex carve-out of the multi-disciplinary Mechanical and Electrical (“M&E”) contracting business for an enterprise value of £27.5 million. As a standalone business SSEC is one of the biggest M&E contractors in the UK and Ireland providing mechanical, electrical, rail, street lighting and high voltage engineering services to install and maintain key infrastructure.

Operating from its nationwide network, SSEC has around 1,900 employees and high voltage (“HV”) engineers that provide essential energy infrastructure for a range of public and private sector clients, including hospitals and schools. It is the largest street light contractor in the UK, and maintains over one million streetlights in the UK and Ireland. SSEC’s Rail division works with vital transport services such as Transport for London and Network Rail to deliver mechanical, electrical and civils activity.

The transaction is executed by AURELIUS Equity Opportunities SE & Co. KGaA (ISIN: DE000A0JK2A8) and will be funded jointly with co-investing AURELIUS entities. The financial terms of the deal are undisclosed. The transaction is subject to approval by the competent competition authorities and certain other conditions. The transaction is expected to close in the second quarter of 2021.
SSEC is well-positioned to capitalise on a strong pipeline of new infrastructure projects planned across the UK, and in-house operational experts from AURELIUS will work with SSEC management and employees to ensure its smooth transition into a standalone business that continues to deliver for customers, suppliers and industry partners with minimal disruption to day-to-day operations.

AURELIUS will enable SSEC to continue and accelerate its already successful transformation from a non-core division to a market leading standalone operator. Already boasting a strong orderbook until FY 2025, AURELIUS and SSEC management, led by Stuart Chaston (MD), see significant opportunities to capture the expanding market for M&E contracting services, forecast to grow by at least £2bn by 2023, with its regional presence and alignment to public sector spend.

Tristan Nagler, UK Managing Director of AURELIUS, said:
“I am delighted to announce yet another complex corporate-carve out, with AURELIUS having now agreed four deals in the past month alone, continuing to build our reputation for excellence in special situations. The acquisition of SSE Contracting offers a platform from which to build AURELIUS’s position in the M&E market where we see considerable scope for future consolidation in the sector.

As other sellers before, SSE recognised AURELIUS to be the partner of choice to execute the divestment of a promising business unit, establishing SSE Contracting as a standalone business so it can fully take advantage of new growth opportunities.

I’d like to thank our investment team and partners on this transaction, and welcome all of SSE Contracting’s team. I would also like to thank the team at SSE and I know that we are mutually committed to ensuring that SSE and SSEC continue to have a productive working relationship into the future. AURELIUS look forward to supporting SSE Contracting as it moves into the next stage of growth, capitalising on new opportunities and additional infrastructure spending expected in the post COVID-19 recovery.”

Gregor Alexander, SSE’s Finance Director, said:
“Aurelius has a proven record of actively supporting the companies they work with, so this change of ownership should provide a good home for the Contracting business. It leaves the SSE group more focused around its renewables and networks core, allowing the Contracting business to thrive in a more specialised environment.”

AURELIUS was advised by Deloitte (Corporate Finance), KPMG (Tax), DLA (Legal), XPS (Pensions) and Roland Berger (Commercial).

ABOUT AURELIUS
AURELIUS Group is a pan-European investment group with offices in Munich, London, Stockholm, Madrid and Amsterdam. Since it was founded in 2006, AURELIUS has grown from a local turnaround investor to an international multi-asset manager.

AURELIUS Equity Opportunities SE & Co. KGaA (ISIN: DE000A0JK2A8, ticker symbol: AR4) is the listed entity within AURELIUS Group and focuses on investing in mid-market corporate carve-outs and platform build-ups in a broad range of industries. With a team of approximately 100 in-house operations experts, AURELIUS actively supports its portfolio companies in their long-term development. AURELIUS Equity Opportunities currently has 27 portfolio companies located across Europe and generate annual revenues of approx. EUR 3.4 billion. The shares of AURELIUS Equity Opportunities are traded on all German stock exchanges.

AURELIUS Group also operates in the areas of growth capital, real estate opportunities and debt. AURELIUS Growth Investments invests in leveraged buyouts usually in succession or corporate spin-off situations. AURELIUS Real Estate Opportunities focuses on real estate investments, the value of which can be increased in the long-term by means of active management. AURELIUS Finance Company is an alternative direct lender, focused on providing flexible debt solutions to small and mid-market firms across Europe.