Mitie PLC has agreed to acquire the Interserve Support Services unit of Interserve Group Limited in the U.K. for a combined consideration of £271m, comprising £120m in cash and a 23.4% shareholding in Mitie to be held by or on behalf of Interserve’s shareholders. Interserve Support Services is comprised of the company’s facilities management operations in the UK and overseas across both public and private sectors.
Completion of the transaction is subject to certain conditions, including approval from Mitie’s shareholders. Should these conditions be satisfied within the expected timeframe, the merger of Interserve Support Services is expected to complete by the end of this year.
Interserve and Mitie are both leaders of the UK FM outsourcing industry. The combined organisation 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.
The combined organisation will be evenly balanced between the public and private sectors and will be the largest facilities management company in the UK, employing over 77,500 people.
Following completion of the transaction, Interserve Group Limited will continue to focus on delivering its business plans for its three remaining divisions, Construction, Interserve Construction Limited and Equipment Services (RMD Kwikform) and Citizen Services. Alan Lovell will continue to lead Interserve Group Limited as Chairman, supported by Mark Morris, Executive Director and Chief Financial Officer.