Argus Fire acquisition expands Mitie’s fire safety services in the UK

Mitie Group plc has acquired Argus Fire, a UK-based engineering-led fire systems business, for £38 million.

This acquisition strengthens Mitie’s footprint in the UK’s fire and security market, which continues to grow due to increasing demands for advanced building safety systems and evolving regulatory requirements.

Founded over 40 years ago, Argus Fire specialises in active fire protection systems, including sprinklers, inert gas fire suppression, and electronic fire detection and alarm systems.

The company’s extensive client base spans multiple sectors, such as education, healthcare, logistics, retail, construction, and transportation, where it has developed long-term client relationships.

New projects support sector-specific fire safety

Argus Fire has recently undertaken prominent fire suppression projects, including the Battersea Power Station and warehouse facilities for logistics and data storage clients.

These projects reflect Argus Fire’s expertise in tailored fire protection solutions and its ability to meet complex safety requirements across different industries.

This acquisition provides Mitie with an expanded capability to self-deliver fire and security solutions and builds on recent acquisitions of GBE Converge and RHI Industrials, which strengthened Mitie’s portfolio.

According to Mitie, the addition of Argus Fire will enhance its service capacity and allow the company to cross-sell fire safety solutions across its customer base.

UK fire and security market growth and legislative shifts

The UK fire and security market is growing, driven by the push for ‘intelligent buildings’ that integrate advanced technological and safety systems.

This trend is reinforced by new legislation holding building owners and managers increasingly responsible for occupant safety.

Argus Fire’s capabilities will contribute to Mitie’s response to this demand by offering a more comprehensive array of fire safety and security solutions.

Financial performance and funding of Argus Fire acquisition

In the 12 months ending 31 March 2024, Argus Fire recorded revenue of £44.3 million, marking a 2% increase year-over-year, and achieved an EBITDA of £3.8 million, reflecting a 25% year-over-year growth.

The acquisition was funded through Mitie’s existing financial resources, further supporting its growth strategy in the fire and security sector.

Jason Towse, Managing Director of Mitie Business Services, stated: “The acquisition of Argus Fire brings deep technical capabilities and builds on Mitie’s position as a market-leading provider of projects delivery, inspection and maintenance across a broad range of sectors in the c.£3bn p.a. UK fire & security market. We look forward to welcoming Argus Fire’s c.200 colleagues to Mitie.”

Matt Lincoln, Managing Director of Argus Fire, commented: “We are delighted to be joining Mitie.

“Having access to their blue-chip customer base, benefiting from their financial strength, and being part of a fast-growing fire & security team will lead to greater opportunities.

“I am very proud of our team and look forward to joining forces with Mitie’s complementary skills in fire & security.”

Mitie Group announces acquisition of Argus Fire, expanding UK fire safety offerings: Summary

Mitie Group plc has acquired Argus Fire, a UK fire systems business, for £38 million, as part of its strategy to grow within the UK fire and security market.

Argus Fire, established over 40 years ago, is known for its expertise in fire suppression and detection systems, servicing a broad client base across education, healthcare, logistics, and more.

The acquisition supports Mitie’s expansion by enhancing its self-delivery fire safety solutions and aligning with the company’s recent acquisitions of GBE Converge and RHI Industrials.

Argus Fire’s recent projects include fire protection installations at Battersea Power Station and various warehouses.

With new UK regulations emphasising building safety, the acquisition positions Mitie to respond to increasing industry demand.

Argus Fire’s financial performance for the last fiscal year included £44.3 million in revenue and £3.8 million in EBITDA.

The acquisition was funded from Mitie’s existing resources, marking another step in its ongoing growth strategy in the fire and security market.