A specialist electronic security systems firm has been acquired by national outsourcing group Mitie in a £19.1m deal.
Northumberland-based R H Irving, which employs around 115 staff, has become part of the £3.9bn turnover facilities management operator in a move that follows its April acquisition of another security consulting firm, Linx International Group. Mitie said the deal was part of its strategy to invest in "high growth, high margin" companies.
R H Irving has been running for more than 20 years and delivers complex and sophisticated security services to UK customers. Mitie called it a company with a strong reputation in regulated markets such as critical national infrastructure.
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From its Matfen headquarters, the £17m turnover specialist in perimeter fences designs, manufactures, builds, installs, and maintains a wide range of products and services, including electronic detection, fabrication, lighting, automated access, CCTV access control, hostile vehicle mitigation and cyber protection. In a message to its London Stock Exchange investors, Mitie said R H Irving had generated EBITDA of £2.4m in the year to the end of February while the most recent accounts available at Companies House show operating profit of more than £341,000 in 2022.
Jason Towse, managing director, Mitie Business Services, said: "R H Irving Industrials is our second security-related acquisition in recent months, reflecting the group's strategy to invest in high growth, high margin companies in the key sectors of security technology, decarbonisation, and telecoms. The business both complements and enhances Mitie's existing capabilities and customer base. We are delighted to welcome the R H Irving Industrials team to Mitie."
Rhiannon Nightingale, corporate finance director within RG Corporate Finance, which advised R H Irving, said: "R H Irving Industrials Ltd is a real North East success story and this acquisition provides a fantastic opportunity to be part of the UK’s leading facilities management and professional services company, with an extensive network that will deliver growth and fresh opportunities. I wish everyone connected with R H Irving Industrials the very best for the future as part of Mitie and it has been a pleasure to advise the team on this significant transaction.”
RGCF's head of corporate finance Carl Swansbury and corporate finance manager Adam Tindale also advised. And corporate tax partner Simon Whiteside and corporate tax director Simon Hopwood provided transactional tax advice.
Legal advice to the shareholders was provided by Square One Law corporate partners Ashraf Ali and Charlie Fielding and corporate solicitor Vanessa Saleh. Ashraf Ali: "Square One Law has had a long working relationship with R H Irving Industrials and its management team and enjoyed supporting the business as it has grown and prospered. It has been a privilege to now support the shareholders on the sale of the company to Mitie, realising all their hard work over the years."
Transaction services advice was provided to Mitie Group plc by James Tubby, Josh Whittingham and Syed Bukhari of PwC, and legal advice by Rebecca Bothamley and Niki Mehta of Mayer Brown.
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