Mitie Acquires Forest Group Holdings to Expand Refrigeration Capabilities

Mitie buys Forest Group Holdings to bring refrigeration in-house

Mitie Group has snapped up Forest Group Holdings, a specialist in commercial refrigeration maintenance, for a maximum cash consideration of £7.0m. The deal comprises £4.5m paid upfront with up to £2.5m deferred over three years, linked to performance. Forest brings 30-plus years of expertise, serving big-name hospitality chains including Mitchells & Butlers, Greene King and Wetherspoon.

The strategic prize is clear: Mitie can now self-deliver refrigeration services as part of its market-leading Intelligent Engineering proposition. That means tighter control of quality and cost, better data integration, and a stronger cross-sell into retail and distribution where refrigeration is mission critical.

Deal terms and key numbers at a glance

Why refrigeration capability matters for Mitie

Refrigeration sits at the heart of hospitality, retail and distribution operations. For supermarkets and big-box logistics, it is operations-critical. By bringing these services in-house, Mitie can reduce reliance on subcontractors, improve response times and integrate assets into its Building Management Systems (BMS) for smart monitoring and predictive maintenance. BMS is the software layer that controls and monitors building systems in real time.

Forest’s 40 engineers will join Mitie’s Technical Services division, complementing Mechanical and Electrical (M&E) and Heating, Ventilation and Air Conditioning (HVAC) capabilities. That bundling matters: clients prefer one accountable provider across HVAC, refrigeration, asset upgrades, decarbonisation tech and power and grid connections. It is a neat fit with Mitie’s Intelligent Engineering approach.

Strategic growth angles: hospitality today, retail and distribution tomorrow

Forest is proven in hospitality, but the RNS highlights the national scalability of its model and the opportunity to expand into retail and distribution. Mitie already serves many high street retailers and major supermarkets across security and hygiene. Adding refrigeration maintenance creates a new cross-sell avenue into estates that run fleets of fridges, freezers and chillers.

There is a sustainability angle too. Efficient refrigeration can drive material energy savings and reduce emissions leakage. That pairs well with Mitie’s decarbonisation and compliance services, potentially unlocking project work alongside maintenance revenue.

Financial lens: price, multiples and what looks fair

On the numbers disclosed, Forest delivered £7.6m of revenue and £0.5m of EBITDA in the 12 months to 31 January 2025. That implies an EBITDA margin of approximately 6.6%. Upfront consideration of £4.5m equates to roughly 9x trailing EBITDA. If the full £7.0m is paid, the multiple rises to about 14x.

Is that rich or reasonable? For a niche, critical-service capability with strong blue-chip customer exposure and clear cross-sell potential, a mid-teens multiple on a full earn-out feels defensible. The performance-linked structure de-risks the price. Earnings accretion or integration cost guidance is not disclosed. Funding from existing facilities suggests no balance sheet strain.

What success looks like after completion

• Self-delivery at scale – fewer subcontractors, tighter quality control and better margin capture over time.
• Data-driven maintenance – integrating refrigeration into BMS should improve uptime, cut energy use and enable predictive maintenance.
• Cross-selling – leverage Mitie’s security and hygiene relationships in retail and supermarkets to win refrigeration maintenance and upgrade projects.
• National rollout – expand Forest’s operating model beyond its Midlands, Northern England and Scotland footprint.

Key risks and watch-outs for investors

• Integration and retention – keeping Forest’s 40 specialist engineers is vital to service continuity and growth.
• Execution on national scaling – moving from regional strength to national coverage requires investment and careful scheduling.
• Contract visibility – contract lengths, renewal rates and pipeline details are not disclosed.
• Margin improvement – current EBITDA margin of c.6.6% leaves room for operational gains, but delivery will depend on self-delivery benefits and mix.

Management’s messaging and tone

Mitie emphasises unlocking self-delivery in refrigeration and enhancing data-led monitoring through BMS integration. Forest’s leadership frames the move as a growth platform with stronger capabilities and support. It reads as a strategically motivated bolt-on, rather than a scale-driven land grab.

Bottom line: small bolt-on, sensible strategic leverage

This is a modest-sized acquisition that slots neatly into Mitie’s Technical Services stack. The economics look reasonable given the capability uplift, cross-sell potential and performance-linked earn-out. Forest’s customer set enhances credibility in sectors where refrigeration is mission critical.

Near-term financial impact is unlikely to be transformational, but the strategic optionality is the appeal. If Mitie can scale self-delivered refrigeration across its retail, distribution and hospitality accounts, the value will come from improved margins, stickier client relationships and incremental project work.

Quick jargon check

• EBITDA – earnings before interest, tax, depreciation and amortisation, a proxy for operating cash earnings.
• M&E – mechanical and electrical services, the core engineering disciplines in building operations.
• HVAC – heating, ventilation and air conditioning.
• BMS – building management systems, software that monitors and controls building assets for performance and energy efficiency.
• Self-delivery – providing services with in-house teams rather than subcontractors.