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Mitie invests in two new Mitie Model businesses

Press Release   •   Jul 05, 2013 13:10 BST

Mitie Group PLC ("Mitie"), the strategic outsourcing company, is pleased to announce that it has agreed to invest £1.2m in two 'Mitie Model' businesses.

Mitie's existing waste management business will be set up as a stand-alone company, Mitie Waste and Environmental Services Limited. The management team will take an equity stake in the business, motivating them to grow the business and share in its future success. In addition, Mitie's latest start-up business is Mitie Local Services Ltd, which will provide cleaning services to smaller-value clients in the London area.

Mitie, which stands for Management Incentive Through Investment Equity, has a long history of partnering with management teams, having participated in over 100 successful start-ups using the 'Mitie Model' in its 25-year history. The 'Mitie Model' is structured so that management teams take an equity stake in a business which they are motivated to grow.

Ruby McGregor-Smith CBE, Chief Executive of Mitie, said: "We are delighted to be investing in two more 'Mitie Model' businesses. Equity participation is a key differentiator for Mitie and we are really looking forward to watching these businesses develop and grow."

Transaction details:

Mitie today agreed to invest in two Mitie subsidiary companies: Mitie Waste and Environmental Services Limited (MWESL) and Mitie Local Services Limited (MLSL) (together the "Transactions") and entered into shareholders' agreements with those companies and certain minority investors. The terms of the Transactions are set out in the shareholders' agreements and articles of association for each company, the latter of which will be shortly available at Companies House. No PLC Director nor their related parties will invest in the shares of either company.

Mitie has invested a total of £1,178,502. The details of each business and the shareholdings held by Mitie and the minority shareholders are detailed below:

  • Mitie Waste and Environmental Services Limited ('MWESL') - the business of MWESL is the provision of waste management services to industrial and commercial clients. The minority shareholders will subscribe for up to 381,500 newly created B (£0.01) class ordinary shares at a value of £1.00 per share payable in cash. Mitie (or its relevant subsidiary company) will subscribe for 818,501 newly created A (£1.00) class ordinary shares, B (£0.01) class ordinary shares and C (£1.00) class ordinary shares at a value of £1.00 per share payable in cash. As a result of the investment, Mitie will own 68.21% of MWESL; and
  • Mitie Local Services Limited ('MLSL') - the business of MLSL is the provision of cleaning services to smaller value clients across London. The minority shareholders will subscribe for up to 190,000 newly created B (£0.01) class ordinary shares at a value of £1.00 per share payable in cash. Mitie (or its relevant subsidiary company) will subscribe for 360,001 newly created A (£1.00) class ordinary shares, B (£0.01) class ordinary shares and C (£1.00) class ordinary shares at a value of £1.00 per share payable in cash. As a result of the investment, Mitie will own 65.45% of MLSL.

-ENDS-

For further information, contact:

Mitie

John Telling, Group Corporate Affairs Director
D: +44 20 3123 8673
M: +44 7979 701006
E: john.telling@mitie.com

Erica Lockhart, Head of Corporate Affairs
D: +44 20 3123 8179
M: +44 7979 784488
E: erica.lockhart@mitie.com

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