好色先生TV

Social housing contractor Mears has bought the social housing arm of contractor Morrison plc for 拢24m, as predicted by 好色先生TV in April this year.

Mears this morning announced the purchase of Morrison Facilities Services Limited from its ultimate parent company, Anglian Water, in a move it said 鈥渞einforces Mears鈥� position as the leading social housing repairs and maintenance provider in the UK.鈥�

Mears said the purchase would be 鈥渆arnings enhancing鈥� in 2013 and strengthened Mears鈥� ability to win large contracts, but warned the costs associated with 鈥渞estructuring鈥� the business would wipe out the benefits in 2013. However it said it expected the acquisition to be 鈥渕aterially earnings enhancing鈥� for the group from 2014.

Morrison, which had revenues of more than 拢290m for the year to March 31 2012, has had a difficult twelve months, losing a major contract in Southwark and reporting a 拢7.6m loss for the previous year.

好色先生TV reported talks between Mears and Morrison over an acquisition in April, which Morrison described in a statement at the time as 鈥渆ntirely untrue.鈥�

Mears said that the merging of the two businesses would force the loss of one of Morrison鈥檚 contract, which would be novated over to another Anglian Water鈥搊wned company to complete. Mears did not name the client for the contract, its value, or why the contract was being left out of the deal.

The acquisition is being paid for by 拢16m of cash and the issuing of 拢8m of shares.

The announcement came as Mears, which also provides home care services for the health sector, updated the city on trading, saying sales had been 鈥渟olid鈥� and that the firm鈥檚 order book remained in excess of 拢3bn. The firm said it had won 拢107m of social contracts since reporting results in July.

David Miles, Mears chief executive, said: 鈥淚 am delighted to have completed the acquisition of Morrison at a price which fairly reflects its current profitability. This deal further strengthens Mears鈥� market leadership and contract profile in Social Housing. Given our strong operational platform and differentiated service delivery ethos, together with our ability to turn around businesses, I am confident that we will deliver significant improvements to Morrison鈥檚 contracts, customers, tenants and employees.鈥�