The housing and social care provider Mears Group has agreed to buy the housing wing of the outsourcing firm Mitie for £35m.
Mitie Property Services (MPS UK) is to transfer to a new company run by Mears, named MPS Housing Limited.
Mears chief executive David Miles said: “I am delighted with the acquisition of Mitie Housing which will further strengthen Mears’ market leadership and contract profile in social housing.”
He added: “Given our strong operational platform and differentiated service delivery, together with our proven ability to turn around underperforming businesses, I am confident that we will deliver significant improvements to contracts, customers, tenants and employees.”
Mitie has published several profit warnings in recent years and the sale is expected to help the firm balance its revenue sheet as part of a restructuring endeavour.