Mitie is to sell its social housing business, Mitie Property Management (MPM) to Mears Group in a deal worth up to £35m. The FM firm, now mid-way through a three-year structural overhaul, will put the money towards rebuilding its balance sheet and pension fund hole.
MPM provides property repairs and maintenance services to around 30 social housing providers and employs about 1,000 people.
The firm’s painting and roofing services are not included in the deal. MPM managing director Vicky Fordham-Lewis, will continue to head up the operation.
Mitie chief executive, Phil Bentley said the sale “will allow Mitie to continue to focus and build scale in its core operations” where it hopes to boost margin and service through “connected workspaces”.
Earlier this year, Bentley claimed its smart energy platform had helped win 29 contract bids since mid-2017, with dozens more ‘connected workspace’ propositions “in the pipeline”.
MPM made £5m before tax on revenues of £128m for the year to 31 March 2018.