Information on the Target

JSM Group, commonly referred to as JSM, is a prominent provider of technical infrastructure services in the United Kingdom and Ireland, specializing in the Power and Communications markets. Established to address the increasing demands for high-quality infrastructure, JSM has established a robust market position, particularly in the Power division, which focuses on high-voltage and extra high-voltage grid connections. This division serves a diverse portfolio of clients, primarily within the data centre, battery storage, and renewable energy sectors.

Additionally, JSM’s Communications division offers essential services, including core fibre infrastructure networks and mobile network solutions, to various long-standing clients in the Communications industry. Renowned for its specialized knowledge and operational excellence, JSM emphasizes a strong commitment to customer service, health, and safety, ensuring it remains competitive and trusted in its core markets.

Industry Overview in the UK

The UK infrastructure industry has seen significant transformation over the past few years, primarily due to the rapid expansion of data-intensive applications and the shift towards renewable energy solutions. Investments in data centres have surged as the demand for connectivity and data storage continues to rise, prompted by the prevalence of digital services and cloud computing.

The energy sector is undergoing a substantial transition, with a strong focus on electrification and decarbonization, driven by governmental policies and the need for sustainable energy solutions. This transition has led to increased capital inflow into the utility sector, where investments are focused on modernizing infrastructure to support the changing energy landscape.

Furthermore, the fibre broadband market is witnessing robust growth, spurred by the push for improved internet connectivity across urban and rural areas alike. Companies that specialize in providing infrastructure solutions are in a prime position to capitalize on these trends, resulting in an overall optimistic outlook for technical infrastructure providers in the UK.

In particular, JSM has strategically positioned itself to leverage these trends, demonstrating remarkable organic growth and expanding its customer base both domestically and internationally. Its order book and project pipeline of over £1.2 billion indicate strong demand and potential for ongoing success in this evolving market.

The Rationale Behind the Deal

The sale of JSM Group by Rutland Partners to TowerBrook Capital Partners comes as a culmination of strategic growth and value creation since Rutland’s acquisition in 2021. JSM’s impressive performance, particularly in the Power division which has achieved approximately 55% annual organic sales growth, prompted Rutland to capitalize on the company’s enhanced market position and established growth trajectory.

This transaction not only represents a successful exit for Rutland Fund III but also opens up avenues for JSM to further expand under the guidance of TowerBrook, enabling the company to maintain its leadership in the utility infrastructure sector and accelerate its international growth initiatives.

Information about the Investor

TowerBrook Capital Partners is a substantial investment firm known for its strategic approach to investing in companies poised for growth and transformation. The firm employs a value-oriented investment strategy, focusing on sectors with high potential for synergy and value creation. TowerBrook has a history of successful investments across diverse sectors, showcasing its capability to enhance operational efficiencies and expand market reach within portfolio companies.

With this acquisition of JSM Group, TowerBrook aims to leverage its deep industry expertise and resources to support the company’s further growth initiatives, particularly as JSM looks to expand its footprint in both the UK and international markets. This partnership promises to provide JSM with the necessary support to navigate new opportunities in a rapidly evolving infrastructure landscape.

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The acquisition of JSM Group by TowerBrook Capital Partners presents a compelling investment opportunity, characterized by JSM's solid market position and the growth potential of the broader infrastructure industry in the UK. The significant return of over 6.6x achieved by Rutland Partners underscores the successful value creation executed during their ownership.

Furthermore, JSM's continued leadership under CEO Stuart Wiltshire, alongside its experienced senior team, instills confidence in the company's future direction and ability to capitalize on ongoing market trends related to data demand and energy transition.

The partnership with TowerBrook is expected to provide JSM with enhanced resources and strategic guidance, fostering innovation and further expansion into new markets. Given the favorable industry dynamics and JSM's proven growth trajectory, this investment represents a strategic alignment well positioned for sustained success.

Overall, the deal reflects a strong confidence in JSM's capacity to navigate the evolving infrastructure landscape, making it a potentially excellent investment that benefits both the investors and the broader community reliant on the essential services JSM provides.

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