Exponent and H&MV bring in minority investors to drive next phase of growth after increase in value to €750m

9 September 2024

Exponent and H&MV bring in minority investors to drive next phase of growth after increase in value to €750m

Continued backing from Exponent combined with new investment led by LGT Capital Partners positions H&MV to pursue strong market opportunity
The transaction will provide further capital for H&MV’s growth ambitions

9 September 2024, LONDON – Exponent, a leading European private equity firm, today announces that it is bringing in LGT Capital Partners as a lead minority investor to H&MV Engineering (“H&MV”, “the Company”), an Irish-based specialist in high voltage (“HV”) electrical engineering and design for Data Centres and Renewables. Today’s news values H&MV at €750 million, up sixfold from €120 million when Exponent first invested in the business two years ago. Since that first commitment by Exponent the business has quadrupled its revenues to over €500m and is set to deliver c.50% growth this year. Funds managed by Hamilton Lane will also make a minority investment via the firm's impact platform.

H&MV provides comprehensive turnkey services across design, commissioning, installation and maintenance of HV substations and grid connections, serving blue-chip clients from its locations in Ireland, the UK, and across EMEA.

Working with Exponent since 2022, H&MV has grown substantially, quadrupling revenue through the execution of an ambitious growth strategy and expanding into new geographies, securing landmark contracts to grow its blue-chip multinational client base. Earlier this year, the business bolstered its core HV specialist offering through the acquisition of Skanstec Group, which added telecommunications and connectivity expertise to H&MV.

From a new headquarters in Castletroy in, Co. Limerick, Ireland, the Company focuses on three highly attractive sectors – Data Centre, Renewables, and Utilities – which are driven by secular global megatrends in growing data demand, decarbonisation and electrification respectively. Looking ahead, these trends continue to present a huge opportunity for H&MV. Given the critical sectors in which it operates, H&MV has developed a clear ESG and sustainability strategy to underpin its growth agenda and support its clients in driving forward the energy transition.

Exponent’s investment in H&MV underscores the firm’s deep commitment to supporting founder-led, Irish-based businesses to accelerate their growth and facilitate international expansion, alongside a long-standing focus on investment in differentiated, market leading businesses in the services sector. It has invested more than €1 billion in Ireland, including, in the last year, Kingsbridge Healthcare Group (private healthcare provider), Ethos Engineering (sustainable data-centre design), and Chanelle Pharma (Ireland’s largest manufacturer of veterinary and medical generic pharmaceuticals). In the services sector Exponent has had many successful investments including Pattonair (aerospace supply chain), V Group (marine services), and the recently exited Enva (environmental services) and Isio (pension and benefits advice).

Today H&MV has a record order book in excess of €1bn and a weighted pipeline of over €1.7bn of opportunities across EMEA. This new investment will further fuel H&MV’s growth ambitions, helping to expand its footprint in the EMEA region and supporting development in new regions, including North America. Led by P.J. Flanagan and his management team, and with Exponent’s, LGT Capital Partners’ and Hamilton Lane’s strategic support, H&MV is well positioned to accelerate its growth plans. Leveraging its position as the market leading specialist in HV engineering, it will deliver mission critical services that enable its clients’ capital projects – supporting the rapidly growing data centre, renewables and utility sectors.

Tim Easingwood, Partner at Exponent, commented: “H&MV has shown exceptional growth since we invested in 2022 and we look forward to continue working closely with PJ Flanagan and his team in the years ahead. The new minority partnership, led by LGT Capital Partners, is set to help accelerate the Company’s international growth, enhance its design and delivery capabilities, and advance its business development agenda.”

John Moore, Chair, H&MV Engineering added: “H&MV is a fantastic business led by a strong management team which operates in highly attractive and rapidly growing end markets. The pace of the energy transition and digitalisation shows no sign of slowing, and H&MV continues to be well placed to enable its client’s critical infrastructure in these areas.”

P.J. Flanagan, CEO, H&MV Engineering said: “We are pleased to welcome LGT Capital Partners and Hamilton Lane as investment partners into H&MV Engineering. This is a significant milestone in the H&MV journey and will support our growth ambitions as we further develop our footprint across the EMEA region and accelerate our expansion plans internationally. This displays our commitment to our loyal clients and dedicated staff as we continue our growth plans to become a premier global provider of specialised design and engineering services in the energy sector across the globe.”

Tommaso Crackett, Principal at LGT Capital Partners also commented: “We are pleased to accompany H&MV Engineering and Exponent on this growth journey and to leverage our reach and resources to help accelerate further. The growing demand for data, decarbonization and electrification presents a big opportunity for the company’s operations.”

H&MV was advised on the transaction by Rothschild & Co (sole equity and debt financial adviser), Macfarlanes, A&L Goodbody, LEK and KPMG.