Target Information

MARCH, formerly known as Edwin James Group, is a prominent multi-disciplinary engineering services provider based in the UK. The company specializes in delivering services across built, process, and digital environments, focusing on complex and regulated sectors. MARCH assists clients in automating critical processes, enhancing existing assets, and expanding operational capacity through its fully integrated design, installation, maintenance, and optimization services. The organization's approach not only maximizes the potential of clients' asset bases but also ensures business continuity, improved output, and promotes sustainability, all while driving new standards for productivity and reliability.

From 2017 to 2022, Aliter played a pivotal role in MARCH's organic growth by facilitating strategic mergers and acquisitions, resulting in the acquisition of five companies nationwide. This expansion transformed MARCH into a national service provider with revenues nearing £200 million and a workforce exceeding 1,000 professionals. With diverse capabilities in mechanical, electrical, energy, and process engineering, MARCH is well-equipped to serve a wide array of blue-chip clients across the UK.

Industry Overview in the UK

The engineering services sector in the UK is robust and diverse, characterized by its innovation and adaptability in response to evolving technological advancements and regulatory frameworks. As industries increasingly prioritize automation and sustainability, engineering firms are uniquely positioned to capitalize on these trends by offering integrated solutions that enhance operational efficiency and environmental performance.

Overall, the UK engineering services industry is witnessing steady growth due to the rising demand for automation and digital transformation. With governmental commitments to infrastructure developments and sustainable energy solutions, firms in this space are likely to experience increased investment opportunities. Additionally, the focus on regulatory compliance and operational resilience has made the industry an attractive landscape for both existing players and new entrants.

Investment in this sector also reflects broader economic trends, emphasizing technological integration, green energy initiatives, and productivity improvements. As businesses strive to adapt, the engineering services market will continue to expand, driven by both domestic and international client demands.

Rationale Behind the Deal

The sale of MARCH to EMK Capital in October 2024 marks a significant milestone in its growth journey, reflecting the successful execution of Aliter's investment strategy. This transaction not only underscores the value created through previous investments and acquisitions but also positions MARCH for further expansion under new ownership. The strategic realignment and emphasis on organic growth facilitated by Aliter have enhanced MARCH’s capabilities, making it an appealing target for acquisition.

Through its past engagements, MARCH has built strong relationships with blue-chip customers, establishing a customer base that is expected to support sustained revenue growth. Emphasizing recurring revenues through framework agreements has also been a key strategy, providing a stable financial foundation moving forward.

Investor Information

Aliter Capital, the investor behind MARCH, has been focused on supporting growth-oriented businesses in the engineering sector since its inception in 2017. Following the launch of Aliter's second fund, Aliter Capital II, in early 2023, additional capital was directed toward MARCH to facilitate strategic acquisitions and propel its next stage of development. This proactive investment approach has demonstrated Aliter's commitment to enhancing market leadership for its portfolio companies.

The team's extensive experience in the engineering sector, paired with a strong understanding of market dynamics, has enabled Aliter to effectively identify and execute value-creating initiatives within MARCH. This investment has not only supported MARCH's considerable growth trajectory but has also ensured operational resilience and sustainable development through strategic focus areas.

View of Dealert

The sale of MARCH to EMK Capital is viewed positively within the investment community, illustrating a well-timed exit that highlights the business's enhanced value post-investment. This deal is not only a testament to the growth achieved through strategic acquisitions but also illustrates the potential for sustained profitability in the UK engineering market. The company’s focus on automation and sustainability places it in an advantageous position within an industry that values innovation and efficiency.

Moreover, MARCH's established relationships with blue-chip clients and strong revenue framework agreements suggest a promising future, making it a potentially lucrative investment for EMK Capital. Given the trends in the engineering landscape, MARCH is likely to continue experiencing robust demand for its services, particularly as industries increasingly turn to engineering solutions that emphasize sustainability and operational resilience.

Ultimately, the transaction marks a successful culmination of Aliter's strategic objectives, effectively capturing the value generated during its investment period while providing MARCH with the necessary resources and expertise to further its ambitions in the engineering sector under new ownership.

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