MITIE invests in two new MITIE Model businesses

RNS Number : 7475I

MITIE Group PLC

05 July 2013

 



5 July 2013

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 'MITIE Model' businesses.

MITIE's existing waste management business will be set up as a stand-alone company, MITIE Waste and Environmental Services Limited. The management team will take an equity stake in the business, motivating them to grow the business and share in its future success.  In addition, MITIE's latest start-up business is MITIE Local Services Ltd, which will provide cleaning services to smaller-value clients in the London area.

MITIE, which stands for Management Incentive Through Investment Equity, has a long history of partnering with management teams, 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 a key differentiator for MITIE 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 Waste and Environmental Services Limited (MWESL) and MITIE Local Services Limited (MLSL) (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 £1,178,502.  The details of each business and the shareholdings held by MITIE and the minority shareholders are detailed below:

·      MITIE Waste and Environmental Services Limited ('MWESL') - the business of MWESL is the provision of waste management services to industrial and commercial clients.  The minority shareholders will subscribe for up to 381,500 newly created B (£0.01) class ordinary shares at a value of £1.00 per share payable in cash.  MITIE (or its relevant subsidiary company) will subscribe for 818,501 newly created A (£1.00) class ordinary shares, B (£0.01) class ordinary shares and C (£1.00) class ordinary shares at a value of £1.00 per share payable in cash.  As a result of the investment, MITIE will own 68.21% of MWESL; and

·      MITIE Local Services Limited ('MLSL') - the business of MLSL is the provision of cleaning services to smaller value clients across London.  The minority shareholders will subscribe for up to 190,000 newly created B (£0.01) class ordinary shares at a value of £1.00 per share payable in cash.  MITIE (or its relevant subsidiary company) will subscribe for 360,001 newly created A (£1.00) class ordinary shares, B (£0.01) class ordinary shares and C (£1.00) class ordinary shares at a value of £1.00 per share payable in cash. As a result of the investment, MITIE will own 65.45% of MLSL.

-ENDS-

For further information, contact:

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

MITIE - notes for editors

MITIE is a £2bn revenue strategic outsourcing company. We work with people who want to perform better - now and in the future. We help our clients to run more efficient and effective businesses by looking after their facilities, their energy needs and the people they're responsible for. Each of our 70,000 people uses their passion, knowledge and ingenuity to deliver the very best for each and every client.

We work with our clients in three ways:

+ Strategy and consultancy

+ Facilities, people and energy management

+ Service delivery including catering, cleaning, security, maintenance, landscaping and pest control.

Some take full advantage of our whole range of expertise, others may only need one aspect of what we do.

No other business in the UK offers so many of these services under one roof, delivered individually and together by people with such a strong sense of purpose.

To find out more about what we do visit us at www.mitie.com

 

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