Mears Group has agreed to buy the social housing maintenance arm of Mitie Property Services in a deal worth up to £35m.
The agreement - which includes an initial payment of £22.5m and a further £12.5m based on performance targets - is expected to be completed by 30 November 2018.
David Miles, group chief executive, said: ‘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.’
Under the deal, the housing activities will transfer to a new company called MPS Housing Limited.
