PROPOSED £270M DEAL CREATING A VAST FACILITIES MANAGEMENT BUSINESS
A Deal worth £270m which will revolutionise the Facilities Management industry in the UK has been proposed.
Mitie have set in motion a deal which would allow it to acquire Interserve’s FM business, in unveiling their rights issue of £200m and they also extended the revolving credit facility.
A share purchase agreement in place to allow the purchase of the Interserve FM business in a deal worth £270m.
Interserve Facilities Management posted revenues close to £1.38bn along with an operating profit of £38m in the year to 31 December 2019.
Phil Bentley, Mitie group chief executive, said: “Mitie has delivered another year of solid results making good progress against our strategy.
“Today’s announcement of a £200m rights issue will strengthen our balance sheet against an extended Covid-19 impact, secure Bank refinancing and provide a platform for growth opportunities.
“We are pleased to have signed a sale and purchase agreement to acquire Interserve’s Facilities Management.
“Together, we will create a true UK facilities management champion and partner to UK business, with over 77,500 exceptional employees.”
“This will be a transformative acquisition, expanding the scale and footprint of our business to create the UK’s largest facilities management company and accelerate the delivery of Mitie’s long-term technology-led, vision.”
“The transaction will better balance our public and private sector divisions; driving greater returns from the investments we have made in technology and customer service over the past three years.
Interserve chairman Alan Lovell added: “The proposed combination of Interserve Facilities Management with Mitie will create the UK’s leading facilities management company, with strong prospects in both the public and private sectors providing significant opportunities to employees, customers, and shareholders alike.”
Alongside this proposed acquisition, Mitie also posted strong financial results and announced a fully underwritten £200m rights issue and refinancing which it said would provide the business with a strong financial position and sufficient liquidity to trade through the Covid-19 pandemic and be suitably capitalised to capture opportunities to support its long-term growth prospects.