Information  X 
Enter a valid email address

MITIE Group PLC (MTO)

  Print      Mail a friend       Annual reports

Tuesday 09 October, 2012

MITIE Group PLC

Acquisition

RNS Number : 2213O
MITIE Group PLC
09 October 2012
 



 

 

9 October 2012

MITIE Group PLC

 

 MITIE acquires leading home care service provider Enara

MITIE Group PLC ("MITIE"), the strategic outsourcing company, is pleased to announce that it has acquired Enara Group Limited ("Enara"), from August Equity LLP and Enara's senior management team, for a total consideration of £110.8m on a cash and debt free basis. Enara is the fourth largest provider of home care services in the UK and will give MITIE a scalable platform to compete in the growing outsourced health and social care sector.

Enara provides high quality home care in the UK, delivering a wide range of services to people who require help and support due to illness, disability or infirmity. The business cares for people via local authority, NHS and private pay agreements.

For the year ending 31 March 2013, Enara is expected to have revenue of £93m and operating profit before amortisation of £10.1m. Costs of approximately £5m are expected to be incurred within the first 12 months following the completion of the acquisition to support its integration into MITIE. The gross assets of the business are £97.3m*. The acquisition is expected to be earnings enhancing before integration costs in the year ending 31 March 2013 and thereafter. The acquisition has been funded by the use of new bridge debt facilities of £150m provided by existing lenders to the group, which will be refinanced into longer term debt facilities in due course. 

The community care market is a significant strategic opportunity for MITIE and an ideal entry point into the health and social care sector. The demographic and economic drivers of an ageing population, together with on-going cost pressure is encouraging a shift both from hospitals and residential care homes towards greater care in the community. The provision of this care is increasingly being outsourced by local councils and health authorities to the private sector, generating significant opportunities for growth.

The home care business will utilise MITIE's expertise in developing and motivating a large and diverse team of people and will benefit from both innovations in quality and the use of technology and efficiencies that can be introduced from MITIE's existing infrastructure. MITIE intends to support the public provision of integrated healthcare by working with the NHS and local authorities to combine community based rehabilitation, elderly and long term care with social care functions.

MITIE has created a dedicated Health Advisory Board to develop the strategic direction of its healthcare offering. The board will comprise Dr Andy Dun, Managing Director of Enara, two MITIE representatives and three independent, non-executive directors who bring extensive experience of the healthcare sector. The independent directors include Edward Lavelle (former regulatory operations director of Monitor, the independent regulator of NHS foundation trusts) and James Barlow (Professor of Technology and Innovation Management Healthcare at the Imperial College London Business School).

Ruby McGregor-Smith CBE, Chief Executive of MITIE, said: "We are delighted to have made this strategic acquisition, which establishes us as a market leader in home care. Enara will provide us with a step-change in our service proposition as well as a platform to grow in the wider healthcare sector. We welcome Enara's people to MITIE."

Dr Andy Dun, Managing Director of Enara, said: "Enara has been providing high quality home care in the UK since 1996 and we are very proud of our excellent reputation with the people we care for and their families. We look forward to developing the business and working as part of MITIE."

 

*Unaudited as at 31 August 2012

-ENDS-

Presentation for analysts and investors

Following this announcement, MITIE will be hosting a presentation for analysts and investors at 09.30 (London) on Tuesday 9 October 2012 at MITIE's offices at Ground Floor East, Cottons Centre, Cottons Lane, 47/49 Tooley Street, London SE1 2QG.

If you would like to participate via conference call, please use the dial-in details listed below:

Date:                             09 October 2012

Start time:                     09.30

Dial-in number:             +44 (0) 20 3003 2666 - Standard International Access
 0808 109 0700 - UK Toll Free

Instructions: Tell the operator that you would like to join the MITIE conference call. Presentation slides that provide an overview of the transaction are available for download at www.mitie.com/investors/reports-and-presentations/2012.  

For further information, contact:

MITIE


John Telling,

Group Corporate Affairs Director

 

D: +44 20 3123 8673

M: +44 7979 701006

E: john.telling@mitie.com

Erica Lockhart

Head of Investor Relations and External Affairs

 

D: +44 20 3123 8179

M: +44 7979 784488

E: erica.lockhart@mitie.com

Enara - notes for editors

Enara, which was owned by August Equity LLP and senior management, is the market leader in the South of England. It operates 57 branches in England and Wales, providing approximately 120,000 hours of care per week, with 6,000 employees supporting over 10,000 people with care needs. Find out more at www.enara.co.uk. 

The last published statutory accounts of Enara Group Limited disclosed revenue of £62.3m, operating profit before amortisation of £7.4m, loss before tax of £88,026 and gross assets of £69.6m.

 

MITIE - notes for editors

We manage facilities, energy and properties for our clients across the UK and beyond - everything from consulting on property and energy strategy to delivering world-class facilities services.

We work with our clients in three ways; some take full advantage of our whole range of expertise, others may only need one aspect of what we do:

Strategy and consultancy

+ Facilities and energy management

+ Service delivery

Our strategic input can add value at the highest level by helping clients to manage their assets, while our practical management expertise can save customers money and reduce their carbon emissions.  We work with a vast number of clients in every industry across both the public and private sectors and deliver the broadest range of services that can be found in one place: from integrated facilities management to engineering maintenance to lifecycle energy management and much more.

There's a lot more to MITIE than you probably think. We're a big company with big ambitions - a leading FTSE 250 support services business, with more than 65,000 people, revenues of £2.0bn, and a reputation for being the best.

Visit us at www.mitie.com


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
ACQDXBDGXDGBGDI