Acquisition

RNS Number : 2400O

MITIE Group PLC

25 June 2010

 



25 June 2010

MITIE acquires Irish facilities management businesses from Dalkia

MITIE Group PLC ("MITIE") has acquired the integrated Facilities Management (FM) business of Dalkia in Ireland. This is by the acquisition of the entire issued share capital of DFM Providers Limited ("DFM") and Dalkia Energy & Facilities Limited ("DEF") from Dalkia Ireland Investments Limited (Dalkia).  Dalkia retains its energy management, utilities, maintenance and lighting businesses on the island of Ireland.

The businesses will be renamed MITIE Facilities Management Ltd and MITIE Ltd. They provide integrated FM solutions for a range of clients in both the public and private sectors, operating in a variety of industries including technology and communications, transport and logistics, manufacturing, utilities and finance. 

The total consideration for the acquisition will be up to €12.5m. Initial consideration of €9.5m was paid in cash on completion and the balance (capped at a maximum additional payment of €3m) will be paid in cash dependent upon the combined businesses achieving a minimum level of earnings before interest, tax, depreciation and amortisation for the year ending 31 December 2010 and other specific targets. At completion both of the acquired businesses were debt free.

The combined pro-forma* financial results of DFM and DEF for the year ended 31 December 2009 were revenues of €28.8m and profit before tax of €1.4m. The gross assets of the two companies combined as at the same date were €19m of which €10.8m related to intangible assets. Integration costs are expected to be in the region of £1m and the transaction is expected to enhance adjusted**earnings per share in the year to 31 March 2011.

Ruby McGregor-Smith, Chief Executive, MITIE Group PLC, commenting on the transaction, said:

"We are very pleased to have acquired this business as the next step in our strategy to develop MITIE's ability to support our clients overseas.

"We are delighted to welcome the management team and all the employees to MITIE."

* The pro-forma revenues of the two companies have been based on the performance of the underlying contracts acquired. DFM is a new company created in November 2009 and in the 2 months to 31 December 2009 reported revenues of €2.7m and profit before tax of €0.15m. DEF was restructured in the last quarter of the 2009 calendar year to exclude contracts not subject to the transaction. In the year ended 31 December 2009 DEF reported revenues of £6.5m and profit before tax of £1.4m.  As a consequence, the financial information provided above has been calculated on a pro-forma basis and the profit before tax stated after taking account of our estimate of the attributable costs required to be invested in the sales, finance and administration functions.   

** - Earnings per share before deduction of the amortisation chargeable relating to the intangible asset created on acquisition.

Contact details

MITIE
John Telling, Group Corporate Affairs Director	D: [phone] M: [phone] E: [e-mail]
Erica Lockhart Investor, Public and Media Relations Manager	D: [phone] M: [phone] E: [e-mail]
Brunswick
Jonathan Glass, Deborah Spencer	[phone]

Notes for editors

What is MITIE?

We're the strategic outsourcing company. What does that mean in practice? We manage facilities, properties and assets for our clients across the UK and beyond.

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 project 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 56,000 people, revenues in excess of £1.7bn, and a reputation for being the best.

Visit us at www.mitie.com

 

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