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Wed December 11 2019

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Tenth acquisition adds to M Group's rail offering

14 Aug M Group Services, the acquisitive parent company of Morrison Utility Services, has taken over rail specialist KH Engineering Services (KHES) for an undisclosed sum.

KH Engineering Services provides M&E to the railway sector
KH Engineering Services provides M&E to the railway sector

With a turnover of £14m, KHES provides mechanical and electrical engineering for the rail industry, including design, installation and maintenance.

Its clients include Transport for London, Govia Thameslink Railway, Greater Anglia, Network Rail, Abellio East Anglia, London & South Eastern Railway, The Go-Ahead Group and Southern Railways.

With M Group, KHES will retain its branding and operate as a standalone, specialist services business. KHES will form part of the group’s transport division that includes civils contractor Dyer & Butler and Antagrade Electrical, a railway electrification specialist.

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This is M Group Services’ 10th acquisition since it was established in 2016 as a parent company for Morrison Utility Services. The group was set up private equity firm First Reserve and bought out by PAI in August 2018.

M Group Services chief executive Jim Arnold said: “Strategic acquisitions are a core part of our strategy as we continue to enhance the scope of capability across our utilities, transport, telecom and data divisions. KHES has earned a strong reputation within the rail sector demonstrating impressive and sustained organic growth through its longstanding relationships with train operating companies and Network Rail. This acquisition broadens the complementary, specialist services delivered through the group’s transport division and we look forward to supporting the KHES management team as they look to cement the company’s leading market reputation and embark on the next stage of their strategic growth plans.”

Neil Edwards, managing director of M Group Services’ transport division, added: “Unlike many of its peers, KHES delivers most of its work through a dedicated team of in-house operatives, ensuring a detailed understanding of its clients’ assets and working environment. This is an exciting addition to our portfolio of businesses that will broaden our scope of capability and add further momentum to the group’s ongoing growth plans for the rail and wider transport sector.”

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