30th Jun 2005 07:02
MITIE Group PLC30 June 2005 MITIE Group PLC ("MITIE") Acquisition of The Watch Security Limited ('Watch') National coverage in Security MITIE is pleased to announce that it has acquired 100% of the issued sharecapital of Watch for a consideration of £6 million payable in cash oncompletion, with an additional £2 million payable in two further tranches of£1,020,000 in January 2007 and £980,000 in June 2007. The consideration issubject to an adjustment of up to an additional £100,000 if the net asset valueof Watch exceeds £1.2 million at completion, thus giving a total maximumconsideration of £8.1 million. Watch is a provider of manned guarding and electronic security solutions basedin Warwick and operating throughout the Midlands. The manned guarding divisionprovides the standard services of static guarding, mobile patrolling,key-holding, alarm response and remote monitoring. In addition, the Company hasalso developed a service called 'Collective Security' whereby neighbouringbusinesses contribute towards the cost of providing local security. Majorcustomers include property management companies, financial institutions andeducation establishments. In October 2002, Watch established an electronicsecurity solutions business which will complement our recent acquisition ofIntruder International Limited. Watch's audited accounts for the financial year ended 30 June 2004 showedturnover of £15.3 million, pre-tax profits for the year of £0.4 million and netassets of £1.08 million. It is estimated that considerable synergy savings willbe achieved on the integration of Watch with MITIE. Lt Col Richard Evans, the founder of the business, will remain with the Companyafter completion. Welcoming Watch to MITIE, Chief Executive Ian Stewart commented, "Theacquisition of Watch completes our national footprint for Security enabling usto provide our customers with a more comprehensive service and to compete forlarger national contracts". 30 June 2005 For further information, please contact: Ian Stewart, Chief Executive, MITIE Group PLCTel: 0117 970 8800Mob: 07979 701002 Ruby McGregor-Smith, Finance Director, MITIE Group PLCTel: 0117 970 8800Mob: 07979 701004 John Telling, Head of Corporate Affairs, MITIE Group PLCTel: 020 7407 0094Mob: 07979 701006 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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