MITIE Group PLC · LSE:MTO
MITIE — Merger or Acquisition (October 2012)
12 slides from MITIE's merger presentation, Oct 9, 2012
Slide 1: Acquisition of Enara Group
Slide 1 Acquisition of Enara Group Presentation to analysts and investors 9 October 2012
Slide 2: MITIE today
MITIE today MITIE £2,002.5 FY2012 Revenues Facilities Technical Facilities Property Asset Healthcare International Management Management Management Management £937.3m £472.8m £524.3m £68.1m NEW £48.0m DIVISION Energy Services • Enara will operate as a separate, dedicated Healthcare division with its
Slide 3: Strategic acquisition
Strategic acquisition • Healthcare is one of MITIE’s key public sector markets − Long-term focus on justice, healthcare, social housing and education • Home care is a natural fit for MITIE’s skill set and values − Managing, motivating and training a large, mobile workforce − Using technology and inn
Slide 4: Why home care?
Why home care? • Adult home care market is an ideal entry point into the healthcare market − Home care market in England c£8bn1, of total UK healthcare spend >£100bn − Number of adjacent market opportunities such as palliative care, end of life care and other community based care that does not requi
Slide 5: Enara: a leading UK home care service provider
Enara A leading UK home care service provider • Fourth largest provider of home care in the UK 1. Saga Homecare 2. Carewatch 3. Mears • Market leader in the South of England − Operates 57 branches in England and Wales − Provides approximately120,000 hours of care per week − 6,000 employees supportin
Slide 6: Enara – business model
Enara – business model • Offers a range of care models to provide services including: − Help with personal hygiene and dressing needs − Morning and night time help to get in and out of bed − Administration and assistance with medications − Liaison with clients’ GPs as required − Respite care for rel
Slide 7: Health advisory board
Health advisory board • Dedicated Health Advisory Board will develop the strategic direction of MITIE’s overall healthcare offering • Executive directors − Dr Andy Dun, Managing Director of Enara − Jeff Flanagan, Managing Director of New Ventures, MITIE − Wayne Felton, Strategic Director of Healthca
Slide 8: Enara – client case studies
Enara – client case studies • Kent County Council − 300,000 hours of care delivered per annum − 13% of services delivered on behalf of primary care trusts (PCTs) within the county − Includes specialist re-ablement services to provide six weeks of intensive support for people who need help regaining
Slide 9: Why Enara?
Why Enara? • Establishes MITIE as a market leader • Expert management team with significant clinical experience − Clinician-dominated, empathetic management differentiates them in the marketplace − Management team will provide MITIE with clinical experience for greater credibility in the healthcare
Slide 10: Financials
Financials • Expected results for the year ending 31 March 2013 − Revenue: £93m − EBITDA: £10.6m − Operating profit before amortisation (EBITA): £10.1m • KPI performance of Enara − EBITA margin: 11% − Conversion of EBITDA to cash: > 80% − Capex as % of revenue: < 2.0% − Order book: £0.2bn − Secured
Slide 11: Acquisition funding and returns
Acquisition funding and returns • Acquisition made at 10.5x EBITDA multiple • Acquisition cost of £110.8m funded from new debt facilities − New funding line of £150m of bridge debt available until April 2014 − Refinancing of bridge facility into longer term debt facilities anticipated in due course
Slide 12: Summary
Summary • Entry into adult home care market with a quality clinician-led operator of suitable scale • Home care is a natural fit for MITIE’s skill set and values • Potential for long-term growth beyond home care market • Strong financial metrics and earnings enhancing Acquisition of Enara Group 12