Mite Group PLC (LON:MTO) has announced the £271mln acquisition of Interserves facilities management business and reported full year profits ahead of expectations.
The deal will be paid for in cash and shares, with shares equivalent to 23.4% of the enlarged group, while management expect to be able to extract £30mln of 'synergies' from the deal.
The facilities management group also proposed raising £201mln in a rights issue as well as an extension of its revolving bank to provide liquidity of £250mln through to mid-December 2022.
Mitie also said trading is “proving to be more resilient to COVID-19 than initially expected”, with revenue in the first two months since the March 31 end of its last financial year down 12% on a year ago.
Full-year results showed revenue of £2.2bn, up 4% but flat on an organic basis if excluding the VSG acquisition from 2018, while underlying profits (EBIT) increased 8% to £86.1mln.
The order book increased 4% to £4.3bn.
There was no final dividend.
Analysts at broker Liberum said the Interserve deal looked a "good fit".
"A valuation of 3.7x EBITDA post-syRead More – Source
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