29 Jul 2024 Rutland Returns over 6.6x on sale of JSM Group
Rutland Partners is pleased to announce that on 26 July 2024 it completed the sale of JSM Group (“JSM”) to TowerBrook Capital Partners. The disposal by Rutland Fund III realises a return of over 6.6x (73% IRR) on the Fund’s investment.
Rutland took a majority stake, investing alongside JSM’s management in 2021. JSM has built a market leading position providing technical infrastructure services to the UK&I’s Power and Communications markets. The Power division provides high-voltage and extra high-voltage grid connections to its blue-chip base across the data centre, battery storage and renewables markets. The Communications division provides core fibre infrastructure network, data centre and mobile network services to a number of longstanding Communications customers. JSM is recognised for its differentiated knowledge and expertise in its core markets, strong operational capability as well as its significant commitment to quality customer service and health and safety.
Since Rutland’s investment, JSM has delivered significant growth, driven particularly by its Power division, which has achieved organic sales growth of c.55% p.a. since acquisition. The business has successfully developed its market leading position and benefited from trends around growing data demand and connectivity requirements (data centres), electrification (utility investment) and decarbonisation (renewables). JSM has developed a large and growing order book and pipeline of over £1.2bn providing it with strong forward visibility. The business has also successfully expanded internationally with operations established in both Ireland and Germany which will further accelerate its growth.
JSM will continue to be led by CEO Stuart Wiltshire with the majority of the senior team remaining in the business as it continues to expand its customer base and further develops into international markets.
David Wardrop, Partner at Rutland said: “JSM is a fantastic, high-growth business supporting the data centre market as well as the ongoing energy transition, and we are delighted with the successful exit to TowerBrook. I would very much like to thank Stuart Wiltshire, John Scanlon and the rest of the JSM team for the exceptional job they have done in growing JSM and we wish them every success for the future.”
Stuart Wiltshire, CEO of JSM, said: “After 20 years of private ownership, JSM took the pivotal decision to secure private equity investment which has proven to be a great success. On behalf of myself, John and the JSM team I would like to thank David and Chris from the Rutland team for their enthusiasm and ability to perfectly balance their ongoing support with the need to give JSM space to deliver on its commitments. JSM is now well positioned to continue our venture to be the most trusted utility infrastructure services provider.”
The investment in JSM was led on behalf of Rutland by David Wardrop with further support from Chris Lynch.