UK-based strategic outsourcing and energy services provider Mitie Group PLC intends to sell its business assets and contracts to housing and social care provider Mears Group PLC.
The purchase price consists a consideration of 22.5 million pounds ($29 million), as well as deferred consideration of up to $16 million. The amount is expected to be raised via a proposed placing of 7 million new ordinary shares at a price of $4.3 per share.
The business to be acquired consists of Mitie Property Management, as well as a newly-formed company called MPS Housing.
Mears Group said that the acquisition provides synergies, a broader exposure to the UK, and has the potential to support its market position through an enhanced growth strategy.