Mears has agreed to buy Mitie’s property management division for £35m.
Mears said the deal would boost its annual revenue by at least £100m and its group order book by £200m.
It added that Mitie’s property management division had a bid pipeline of around £800m, with “potential cross selling opportunities” into the Mitie Housing customer base.
Mears will pay £22.5m upfront for the business, raising the money through a placing of new ordinary shares in the company.
It will also pay a deferred sum of up to £12.5m, subject to certain conditions linked to earnings in the two-year period following completion of the deal.
David Miles, chief executive of Mears, said: "I am delighted with the acquisition of Mitie Housing which will further strengthen Mears’ market leadership and contract profile in social housing. Given our strong operational platform and differentiated service delivery, together with our proven ability to turn around underperforming businesses, I am confident that we will deliver significant improvements to Mitie Housing’s contracts, customers, tenants and employees.”
