Mitie Group To Pay Up To EUR12.5M For Dalkia Businesses

25th Jun 2010 09:12

LONDON (Dow Jones)--Mitie Group PLC (MTO.LN), a strategic outsourcing company, said Friday it has acquired the integrated facilities management business of Dalkia Ireland Investments Ltd. in Ireland for EUR12.5 million. MAIN FACTS: -Mitie Group will acquire the share capital of DFM Providers Ltd and Dalkia Energy & Facilities Ltd from Dalkia. -Initial consideration of EUR9.5 million was paid in cash on completion and the balance, capped at a maximum additional payment of EUR3 million, will be paid in cash dependent upon the combined businesses achieving a minimum level of earnings before interest, tax, depreciation and amortization for the year ending Dec. 31, 2010, and other specific targets; At completion both of the acquired businesses were debt free. -Dalkia will retain its energy management, utilities, maintenance and lighting businesses on the island of Ireland. -The businesses will be renamed Mitie Facilities Management Ltd and Mitie Ltd; They provide integrated FM solutions for a range of clients in the public and private sectors. -The combined pro-forma financial results of DFM Providers and Dalkia Energy for the year ended Dec. 31, 2009, were revenues of EUR28.8 million and pretax profit of EUR1.4 million; Gross assets of the two companies combined as at the same date were EUR19 million. -Mitie expects integration costs to be in the region of GBP1 million and the transaction to enhance adjusted earnings per share in the year to March 31, 2011. -Shares of Mitie at 0809 GMT up 2.2 pence or 1%, at 221.5 pence, valuing the company at GBP782.6 million. -By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, [email protected] (END) Dow Jones Newswires June 25, 2010 04:12 ET (08:12 GMT)