MITIE invests in two new MITIE Model businesses

RNS Number : 1414P

MITIE Group PLC

19 October 2012

 



19 October 2012

MITIE Group PLC

 MITIE invests in two new MITIE Model businesses

MITIE Group PLC ("MITIE"), the strategic outsourcing company, is pleased to announce that it has agreed to invest £1.2m in two new 'MITIE Model' businesses.

MITIE's existing catering business, MITIE Catering Services Limited, has been recapitalised to allow the management team to take an equity stake in the business and motivate them to grow it and share in its future success.  In addition, MITIE's latest start-up business is MITIE Work Wise Ltd, which provides document services and corporate legal documents to professional services organisations.

MITIE, which stands for Management Incentive Through Investment Equity, has a long history of partnering with management teams to start-up businesses, having participated in over 100 successful start-ups using the 'MITIE Model' in its 25-year history. The 'MITIE Model' is structured so that management teams take an equity stake in a business which they are motivated to grow.

Ruby McGregor-Smith CBE, Chief Executive of MITIE, said: "We are delighted to be investing in two more 'MITIE Model' businesses.  Equity participation is at the heart of our organisation and we are really looking forward to watching these businesses develop and grow."

Transaction details:

MITIE today agreed to invest in two MITIE subsidiary companies: MITIE Catering Services Limited (MCASL) and MITIE Work Wise Limited (MWWL) (together the "Transactions") and entered into shareholders' agreements with those companies and certain minority investors.  The terms of the Transactions are set out in the shareholders' agreements and articles of association for each company, the latter of which will be shortly available at Companies House. No PLC Director nor their related parties will invest in the shares of either company.

MITIE has invested a total of £1,223,750.  The details of each business and the shareholdings held by MITIE and the minority shareholders are detailed below:

·      MITIE Catering Services Limited ('MCASL') - the business of MCASL is the provision of catering services to industrial and commercial clients.  The minority shareholders will subscribe for up to 445,000 newly created D £0.01 ordinary class of shares at a value of £1.00 per share payable in cash.  MITIE (or its relevant subsidiary company) will subscribe for 905,000 newly created E £0.01 ordinary class of shares at a value of £1.00 per share payable in cash.  As a result of the investment, MITIE will own 76% in MCASL; and

·      MITIE Work Wise Limited ('MWWL') - the business of MWWL is the provision of corporate legal documents and document services to professional services organisations.  The minority shareholders will subscribe for up to 306,250 newly created B £0.01 ordinary class of shares at a value of £1.00 per share payable in cash.  MITIE (or its relevant subsidiary company) will subscribe for 318,750 newly created A £1.00 ordinary class of shares at a value of £1.00 per share payable in cash. As a result of the investment, MITIE will own 51% in MWWL.

-ENDS-

For further information, contact:

MITIE
John Telling, Group Corporate Affairs Director	D: [phone] M: [phone] E: [e-mail]
Erica Lockhart Head of Investor Relations and External Affairs	D: [phone] M: [phone] E: [e-mail]

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

 

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