Member Article

Mears make £24m growth acquisition

Gloucester-based social housing and care support firm, Mears have announced the acquisition of Morrison Facilities Services Limited for £24m.

Morrison is currently loss making, however Mears has identified synergies its structure and service delivery ethos and the acquired contract book.

Glasgow-based Morrison provide repair and maintenance services to social housing clients in England and Scotland.The move will allow Mears to secure larger tenders, as Morrison has greater focus on higher revenue contracts.

Mears expects to be able to achieve trading enhancements of around £1m in both 2013 and 2014. The Board of Mears believe that over time they can move Morrison’s operating margin towards those achieved by Mears’ in its social housing business.

David Miles, Chief Executive of Mears, said: “I am delighted to have completed the acquisition of Morrison at a price which fairly reflects its current profitability. This deal further strengthens Mears’ market leadership and contract profile in Social Housing.

“Given our strong operational platform and differentiated service delivery ethos, together with our ability to turn around businesses, I am confident that we will deliver significant improvements to Morrison’s contracts, customers, tenants and employees.”

This was posted in Bdaily's Members' News section by Tom Keighley .