MITIE Group PLC Sale of Mitie Pest Control Limited (4320C)
01 October 2018 - 4:00PM
UK Regulatory
TIDMMTO
RNS Number : 4320C
MITIE Group PLC
01 October 2018
Mitie Group plc
LEI number: 213800MTCLTKEHWZMJ03
01 October 2018
This announcement contains inside information
Sale of Mitie Pest Control Limited
Mitie Group plc (LSE: MTO.L)("Mitie" or the "Group") today
announces the sale of the entire issued share capital of Mitie Pest
Control Limited ("Mitie Pest" or the "Company"), to Rentokil
Initial plc (LSE: RTO.L)("Rentokil") for a consideration of GBP40
million in cash (on a debt free, cash free basis).
The consideration of GBP40 million will be paid in cash at
completion, subject to any adjustment for final completion
accounts. The majority of the proceeds will be used to strengthen
the balance sheet and accelerate partial repayment of the deficit
under the Group's defined benefit pension scheme, with the balance
being reinvested in core businesses.
Mitie Pest reported profits before tax of GBP2.0 million for the
financial year ended 31 March 2018. Earnings before interest and
tax, adjusted to exclude non-recurring items and the recharge of
Mitie central service costs, were GBP3.2 million over the same
period. At a balance sheet date of 31 March 2018, Mitie Pest had
gross assets of GBP8.7 million. The Company continues to grow and
the forecast earnings before interest and tax, adjusted to exclude
non-recurring items and the recharge of Mitie central service costs
for the six months ended 30 September 2018 are expected to be
GBP2.4 million.
Phil Bentley, Chief Executive Officer, Mitie, commented:
"Historically, Mitie has worked with preferred partners to
deliver certain specialist services for our clients. By teaming up
with Rentokil Initial - the UK's largest provider of Pest services
- we free up funds to invest in our core businesses, whilst
ensuring service quality and innovation are maintained for our
clients."
Mitie Pest's Interim Managing Director Andy Halsall will
continue his role with the Company for an interim period, to ensure
a smooth transition of the business from Mitie to Rentokil and
ensure continuity of service for Mitie's customers.
Mitie has separately entered into a preferred supplier
partnership with Rentokil, covering a range of services (including
pest services) provided as part of an integrated facilities
management offering to Mitie's wide range of customers. Rentokil's
expertise will enhance the range of services that Mitie provides to
its integrated facilities management customers.
The sale of Mitie Pest constitutes a Class 2 transaction for the
purposes of the UK Financial Conduct Authority's Listing Rules.
- Ends -
For further information, contact:
Claire Lovegrove
Head of Media Relations, Corporate Affairs
T: +44 (0)20 3123 M: +44 (0)790 027 E: claire.lovegrove@mitie.com
8716 6400
Anna Gavrilova
Head of Investor Relations
T: +44 (0)20 3123 M: +44 (0)738 443 E: anna.gavrilova@mitie.com
8675 9112
Peter Dickinson
General Counsel and Company Secretary
T: +44 (0) 203 123 M: +44 (0)776 821 E: peter.dickinson@mitie.com
8157 5013
Notes for editors
About Mitie Pest
Mitie Pest offers a range of commercial pest control services,
covering everything from technical inspection and routine
preventative services to pest proofing and clearance works. With a
team of approximately 375 employees, it services more than 3,000
primarily local and regional customers in the UK and Ireland.
About Mitie Group
Founded in 1987, Mitie is the UK's leading facilities management
and professional services company. We offer a range of specialist
services including engineering services, security, energy and
property consultancy within Professional Services, catering,
cleaning, pest control, landscaping, custody support services, and
property maintenance.
Mitie employs 49,000 people across the UK, looking after a
large, diverse blue-chip customer base, from banks and retailers,
to hospitals, schools and government departments. We take care of
our customers' people and buildings, by delivering the basics
brilliantly and by deploying advanced technology. We are pioneers
in the Connected Workspace, using smart analytics to provide
valuable insight and deliver efficiencies to create outstanding
work environments for our customers.
Find out more at www.mitie.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DISEAPNEDFLPEFF
(END) Dow Jones Newswires
October 01, 2018 02:00 ET (06:00 GMT)
Mitie (LSE:MTO)
Historical Stock Chart
From Apr 2024 to May 2024
Mitie (LSE:MTO)
Historical Stock Chart
From May 2023 to May 2024