Acquisition

MITIE Group PLC
07 March 2006


                           MITIE Group PLC ('MITIE')


          Acquisition of Rentokil Initial UK Manned Guarding Business


MITIE is pleased to announce that it has acquired the entire issued share
capital of Initial Security Limited (Initial Security UK), being the UK manned
guarding business of Rentokil Initial plc. The consideration for the business is
£74.8 million comprising £59.1 million for the equity of the business and £15.7
million representing inter-company and other debts at 25 December 2005. MITIE
will assume additional debt in the business of approximately £2million in
respect of short-term working capital movements since 25 December which will
unwind over the coming months.


Initial Security UK is a leading supplier of security services, providing
contract guarding, aviation security, patrol and alarm response services and key
holding to a wide range of government, commercial, industrial and retail clients
on over 2,000 sites. Initial Security UK employs over 6,000 staff in 18 branches
across the UK. In the year ended 25 December 2005, Initial Security UK generated
turnover of £130.7 million and profit before tax of £4.5 million. Gross assets
of Initial Security UK at 25 December 2005 were £39.3 million.


Following the acquisition, MITIE Security will become the second largest manned
guarding business in the UK employing over 9,000 officers. Initial Security UK
adds significantly to MITIE's existing security business which, in the year
ended 31 March 2005, generated £54 million turnover and employed circa 2,200
people. Initial Security UK is a strong fit with MITIE's existing security
business, adding specialism in the aviation and retail sectors and strengthening
MITIE's regional operations. MITIE will fully integrate Initial Security UK with
its current security division and expects to realise significant synergy
benefits across all elements of the business. Whilst the acquisition is expected
to be earnings enhancing in the year ending 31 March 2007, the benefits of the
cost savings will be absorbed by the integration costs in the first full year of
ownership and therefore the full benefits of integration are only expected to be
realised in the financial year ending 31 March 2008.


MITIE's Chief Executive, Ian Stewart, commented: 'A new force in the manned
guarding industry has been created. I look forward to welcoming Initial Security
UK's management and employees to MITIE. This acquisition transforms MITIE's
security business, enhancing our strengths in terms of clients, sector
specialisations and geographic footprint. There are exciting times ahead.'


Richard Moule, Managing Director of Initial Security UK, stated: 'I am delighted
that we have become a part of MITIE. This is a positive move for the employees
and customers of Initial Security UK. MITIE's strategic focus on the UK manned
guarding market will produce significant opportunities for the business.'


7 March 2006



For further information, please contact:

Ian Stewart, Chief Executive, MITIE
Ruby McGregor-Smith, Chief Operating Officer, MITIE
The afternoon of Tuesday 7 March 2005 on 020 7567 0558
All other times 0117 970 8800


John Telling, Head of Corporate Affairs, MITIE
Tel: [phone]
Mob: [phone]









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