M&C aims for £100m after latest takeover

Energy consultancy M&C has outlined ambitious plans to grow into a £100 million business, two and a half times its current size, after unveiling its fourth takeover in less than a year

• M&C chairman Gerry Higgins: Revenues of 80m-100m 'eminently achievable'

Chairman Gerry Higgins - who joined the Dunfermline company when it was acquired last January by private equity outfit Lyceum Capital for 22m - said the takeover of Oldham-based Utility Masters would push turnover past the 40m mark.

When Lyceum bought M&C - which was previously known as McKinnon and Clarke - last year, the company said it expected to increase its sales to 60m in five years.

But Higgins, who previously headed Bodycote's testing operations at Newbridge, near Edinburgh, said he now expects revenues to hit 100m over the same timeframe.

The latest deal gives M&C a network of 20 offices in 13 countries.

Buying Utility Masters means the Scottish company now manages more than 6.25 billion of energy consumption each year for 3,500 companies, with UK clients including Microsoft and Vion, the Dutch firm that owns Grampian Country Foods.

Higgins said: "Our business has an appetite to integrate other companies. I think revenues of between 80m and 100m are eminently achievable.

"We're growing the headcount here in Fife, building an infrastructure here in Scotland to support global growth."

The company has about 100 staff in Fife. It recently took on ten people after bringing services back in house having previously outsourcing them to India.

Higgins said more takeover deals could be on the way.

"We've got quite a large pipeline of acquisitions at the moment," he said. "We are looking to add to our product areas as well as our geographic expansion and we're looking at starting businesses in other markets."

Financial terms for the Utility Masters deal were not disclosed but the English company's three founding partners - Jim McGhie, Shaun McClarnon and Kevin Whaites - will remain with M&C.

"That was a key issue for us in the acquisition," said Higgins. "The firm has very good management.

"They are heavily exposed to the food sector, which we haven't been, and they have some very clever products for meeting peak demand from energy users."

McGhie, managing director of Utility Masters, said: "M&C's global reach will bring significant benefits to our clients, many of whom require an integrated energy service across many sites.We are looking forward to working with M&C to drive forward this strong business."

In June, M&C chief executive Simon Northrop hailed the takeover of European risk specialist Encore as a "defining moment" for the firm.

The deal to buy Hungary-based Encore for 6.3m had been backed by HSBC and Lyceum and was the first in a hat-trick of acquisitions last year.

In October, M&C snapped up Australian firm Creative Energy Solutions and German consultancy ETT, both for undisclosed sums, as part of its plan to extend its international reach.

Lyceum partner Dan Adler said: "This latest acquisition highlights our commitment to create one of the world's leading energy management consultancies in M&C."