Mortice to buy property services company Elite for up to £4.5m

AIM-listed securities and facilities management company Mortice and its wholly-owned subsidiary Tenon have agreed to pay up to £4.5m for Manchester-based property services group Elite in cash and shares.

Mortice said the acquisition, which is expected to be immediately earnings enhancing, further expands the company's UK footprint and is in line with its acquisitive and organic growth strategy, as outlined on 22 April 2015.

It noted that Elite has a strong blue-chip client base, which is complementary to the company's existing portfolio. In addition, once fully integrated with Mortice's existing infrastructure, a number of operational savings are expected.

Founded in 1994, Elite has around 1,000 employees and offers a full range of cleaning services, as well as additional facilities management services and support services. It achieved audited revenues of £12.3m and earnings before interest, taxes, depreciation and amortisation of £1.0m for the financial year ended 31 December 2016.

Executive chairman Manjit Rajain said: "We are delighted to further strengthen our position within the UK market. Elite has a strong reputation and client base and it offers clear synergies with our existing operations and presents many cross-selling opportunities, as well as immediately enhancing the group's earnings. We are very excited by the wider market opportunities and ability to further drive profitability."