Mitie is buying Interserve’s facilities management arm for £271m, which will create the UK’s largest FM business, employing 77,500 staff
As part of the agreed facilities management takeover, Interserve will receive £120m in cash and a 23.4% shareholding in Mitie.
The proposed transaction is subject to certain conditions, including approval from Mitie’s shareholders.
The combined organisation will be evenly balanced between the public and private sectors and will be the largest facilities management company in the UK, employing over 77,500 people.
Following the completion of the transaction, Interserve will continue to focus on delivering its business plans for its three remaining divisions; construction, Interserve Construction Limited and Equipment Services (RMD Kwikform) and citizen services.
Alan Lovell will continue to lead Interserve as chairman, supported by Mark Morris, executive director and chief financial officer.
Interserve will remain focused on delivering infrastructure where it can leverage its capabilities in order to create value for clients.
It will focus on delivering on time and to budget across a range of key sectors including healthcare, defence, education, and major framework projects with the central government, local authorities, utilities and other private and public sector organisations.
The company will continue to be chaired by Nick Pollard, supported by managing director, Paul Gandy.
RMD Kwikform will remain focused on providing complex engineering solutions to customers in the UK and internationally, supported by its leading technology and an extensive fleet of specialist equipment.
RMD Kwikform will continue to be led by its chairman Ken Hanna and Ian Hayes as managing director.
The group’s citizen services division, comprising of Interserve Healthcare, Interserve Learning & Employment (ILE) and the company’s Community Rehabilitation Companies that deliver rehabilitative services to low and medium risk offenders.
This division, previously part of Interserve Support Services, is not included in the transaction and will continue to be managed by Ian Mulholland.