European private investor PAI Partners has bought the £1bn revenue M Group Services from First Reserve.

This acquisition will not involve any change to ownership of the businesses within M Group Services Divisions, which includes Morrison Utility Services, Morrison Data Services, Dyer & Butler, Magdalene, PMP Utilities, M Group Services Plant & Fleet Solutions and any operating businesses within them.

The actual sale of the business will occur following European Commission antitrust approval, which is required for an acquisition of this scale. It is anticipated this will be complete by the end of August.

Colm O’ Sullivan, Partner at PAI Partners, said: “We are delighted to be acquiring M Group Services and look forward to the next phase of the company’s development.

“PAI has closely followed the business since 2013 and we have been very impressed by the transformation achieved by its management team – in particular its expansion beyond utilities. We intend to continue the strategy of consolidating the UK infrastructure services market.”

Jim Arnold, chief executive of M Group Services said: “Over the past two years, First Reserve’s strategic investment in our group has enabled the successful delivery of our business strategy.

“This has resulted in continued profitable growth. We have broadened the markets in which we operate, we have diversified our service offering and we have created a strong foundation for future continued success across the utilities, data, transport and telecom markets with their support.

“During the last few months, we have continued to work closely with First Reserve, on the next stage of our growth.

“As part of this process an opportunity arose that has allowed First Reserve to realise the benefits of their investment to date and for us to introduce PAI, as a new long-term investor to sit alongside the existing senior management and to actively support the future development of the group.