M Group Services (‘the Group’), a leading provider of services to essential infrastructure markets in the UK, with a turnover of over £1.3bn, announces it has exchanged contracts for the purchase of Skanska UK’s infrastructure services operation, with completion anticipated to take place in 2021.

With revenue of £320 million in 2019, Skanska’s infrastructure services operation is a successful and resilient infrastructure maintenance business that serves the transport sector; including highways maintenance, street lighting, rail and highways projects. With circa. 1,500 people operating long-term contracts through established relationships with their clients, they are a natural fit with M Group Services. 

To receive the business a new company has been formed, Milestone Infrastructure Ltd, which, following completion and subject to consultation, it is proposed the majority of the existing people in Skanska’s infrastructure services business will TUPE to. Those delivering the rail contracts will TUPE to Dyer & Butler where they will become part of a larger rail business supporting future growth more effectively.

Milestone Infrastructure will operate as a standalone highways maintenance, street lighting and highways projects business under the continued leadership of Managing Director Adrian Cooke and his senior leadership team. It joins Dyer & Butler, KH Engineering Services and Antagrade Electrical as a part of the M Group Services Transport Division. This will enable a broader scope of services to be offered to clients within the transport sector and adds further momentum to growth plans for the division and wider Group. Adrian Cooke will report to Neil Edwards, Managing Director of the Groups Transport Division.

M Group Services Chief Executive Jim Arnold commented: “Strategic acquisitions are a core part of our strategy as we continue to enhance the scope of capability across our sector focused divisions. Skanska’s infrastructure services business has earned a strong reputation within the transport sector due to its consistent, quality delivery and innovative solutions which has led to strong and longstanding relationships being established with many local authority clients including Hampshire County Council, Oxfordshire County Council, Devon County Council and Cambridgeshire County Council in addition to the likes of Transport for London. We very much look forward to welcoming them to the Group in 2021.” On completion, the acquisition of Skanska’s infrastructure services business will take the total number of acquisitions made by M Group Services to 12 since December 2016.