Cleanzine: your weekly cleaning and hygiene industry newsletter 18th April 2024 Issue no. 1110

Your industry news - first

The original and best - for over 20 years!

We strongly recommend viewing Cleanzine full size in your web browser. Click our masthead above to visit our website version.

Interserve's Support Services division to merge with Mitie

Interserve Group and Mitie have announced a proposed merger of Interserve Support Services (comprised of Interserve's facilities management operations in the UK and overseas across both public and private sectors) with Mitie for a combined consideration of £271m, comprising £120m cash and a 23.4% shareholding in Mitie to be held by/on behalf of Interserve's shareholders.

The combined organisation will be evenly balanced between the public and private sectors and will be the largest FM company in the UK, employing over 77,500 people. 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 the two to share best practice, innovation and technology to the benefit of their combined extensive customer portfolio

The Board of Interserve Group believes that the proposed transaction creates a larger and stronger UK FM business and is highly attractive to its stakeholders, including its employees, customers, partners and shareholders.

Following completion of the transaction, Interserve Group will continue to focus on delivering its business plans for its three remaining divisions, Construction, Interserve Construction and Equipment Services (RMD Kwikform) and Citizen Services. Alan Lovell will continue to lead Interserve Group as chairman, supported by Mark Morris, executive director & chief financial officer.

"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," says Alan Lovell.

"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.

"It will leave Interserve as a focused Group executing clear business plans in Interserve Construction and RMD Kwikform, as well as our Citizen Services portfolio of businesses."

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 is expected to complete by the end of this year. Mitie will also be engaging with the Competition & Markets Authority as part of the merger process.

www.interserve.com / www.mitie.com

25th June 2020