Mitie has signed a conditional sale & purchase agreement to acquire Interserve Facilities Management in a transaction valued at £271 million.
The proposed merger, which is subject to approval from Mitie’s shareholders and will require ratification by the Competition and Markets Authority, is expected to be completed by the end of this year.
In a statement, Interserve said that the “larger and stronger UK FM business… will be uniquely placed in the UK market to deliver best in class, market-leading services to customers”.
“Interserve’s expertise in delivering frontline critical public services together with Mitie’s pedigree in delivering technical and business services to the private sector will enable us to share best practice, innovation and technology to the benefit of our combined extensive customer portfolio.”
With the support services business taken on by Mitie, Interserve Group says it will focus its efforts on the group’s remaining divisions – Construction, Interserve Construction Limited and Equipment Services (RMD Kwikform) and Citizen Services.
Alan Lovell, Chairman of Interserve Group Limited, said:
“The proposed combination of Interserve Support Services 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.
“The transaction, which is consistent with our stated strategy of realising value for our shareholders, will reduce the group’s debts, enable a paydown to our shareholders and stabilise the group’s financial position through a retention of a proportion of the proceeds."