The proposed take-over needs to be ratified by Mitie’s shareholders and is expected to complete by the end of this year.
Mitie, which presently employs 37,500 staff, this morning posted operating profits of £86m from £2.2bn turnover in the year to March.
Following the completion of the transaction, Interserve Group will continue to focus on delivering its business plans for its three remaining divisions: Interserve Construction, RMD Kwikform, as well as its Citizen Services portfolio of businesses.
Also Mitie this morning announced plans for a £200m right issue and extension of a £250m banking facility until the end of 2022 to put it on a stable financial footing.
Phil Bentley, Mitie group chief executive, said: “We are pleased to have signed a sale and purchase agreement to acquire Interserve’s Facilities Management.
“This will be a transformative acquisition, expanding the scale and footprint of our business to create the UK’s largest facilities management company and accelerate the delivery of Mitie’s long-term technology-led, vision.”