Move will create country鈥檚 largest FM business

Interserve is selling its FM business to support services rival Mitie for 拢271m.

Speculation about the break-up of the business followed last November鈥檚 restructure which saw the business split into three main operating divisions with its own chairman and managing director.

Interserve

Interserve鈥檚 remaining businesses include construction and RMD Kwikform

Former chief executive Debbie White stepped down after two years in charge but she was not directly replaced with group-wide functions being led by Mark Morris, executive director and chief financial officer.

Today鈥檚 cash and shares deal will see Mitie hand over 拢120m in cash while Interserve shareholders will take a 23.4% stake in the business.

The move, which must be rubber-stamped by the government鈥檚 competitions watchdog Competition and Markets Authority, will create the largest FM company in the UK with 77,500 employees.

Last year Interserve鈥檚 FM arm had revenue of 拢1.4bn, posting operating profits of 拢43m. In its full year results for the 12 months to Marc, announced this morning, Mitie turned in operating profits of 拢86m on income of 拢2.2bn.

The remaining Interserve businesses are construction, its equipment services business, RMD Kwikform and its Citizen Services which works for government agencies and focusses on healthcare, learning and employment and rehabilitation.

Topics