Sale of Mitie Pest Control Limited
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 £40 million in cash (on a debt free, cash free basis).
The consideration of £40 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 £2.0 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 £3.2 million over the same period. At a balance sheet date of 31 March 2018, Mitie Pest had gross assets of £8.7 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 £2.4 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:
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Claire Lovegrove |
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Head of Media Relations, Corporate Affairs |
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T: +44 (0)20 3123 8716 |
M: +44 (0)790 027 6400 |
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Anna Gavrilova |
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Head of Investor Relations |
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T: +44 (0)20 3123 8675 |
M: +44 (0)738 443 9112 |
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Peter Dickinson |
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General Counsel and Company Secretary |
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T: +44 (0) 203 123 8157 |
M: +44 (0)776 821 5013 |
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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.
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