MITIE Group PLC Sale of Mitie Pest Control Limited (4320C)

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RNS Number : 4320C

MITIE Group PLC

01 October 2018

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 GBP40 million in cash (on a debt free, cash free basis).

The consideration of GBP40 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 GBP2.0 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 GBP3.2 million over the same period. At a balance sheet date of 31 March 2018, Mitie Pest had gross assets of GBP8.7 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 GBP2.4 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:

 
 Claire Lovegrove 
 Head of Media Relations, Corporate Affairs 
 T: [phone]    M: [phone]   E: [e-mail] 
  8716                 6400 
 
 Anna Gavrilova 
 Head of Investor Relations 
 T: [phone]    M: [phone]   E: [e-mail] 
  8675                 9112 
 
 Peter Dickinson 
 General Counsel and Company Secretary 
 T: [phone]   M: [phone]   E: [e-mail] 
  8157                 5013 
 

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

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October 01, 2018 02:00 ET (06:00 GMT)