Mears agrees £72m deal to sell planning company
By Rob Freeman | 6th November 2020
Mears has agreed a deal to sell a business which chief executive David Miles described as "a great success story" for £72million.
The housing and social care provider, based in Brockworth, has agreed the conditional deal for land and planning services provider TerraQuest as it continues to concentrate its focus on specialist housing solutions.
TerraQuest, which is based in Birmingham, has been part of the Mears Group since 2009 and its growth since then included the contract to develop and operate the online National Planning Portal, which processes around 90 per cent of planning applications in England and Wales.
It generated revenues of £20.9million in 2019 with a pre-tax profit of £4.9million.
The deal to new company Mason Bidco Limited, agreed with funds advised by Apse Capital, is conditional of the approval of Mears shareholders and TerraQuest's joint venture partner MHCLG.
Mr Miles said: "TerraQuest has been a great success story within the Mears Group.
"Through the provision of both financial and intellectual capital we have created a leading digital and technical services provider to the planning, infrastructure and property sectors across the UK.
This transaction secures the next stage of TerraQuest's development and allows Mears shareholders to realise significant value from this investment."
He continued: "The disposal materially strengthens the Mears Group balance sheet and completes our strategic programme to focus on our core activities of specialist housing services to local and central government clients.
"Our portfolio of high-quality contracts focused on our core housing services and the group's strengthened balance sheet mean we look to the future with confidence."
Copyright 2021 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.