Mitie acquires security firm VSG from Compass
Outsourcer Mitie has struck a £14 million deal to acquire a security business from Compass Group.
It will see Mitie take control of Vision Security Group, which is described as a security services provider offering integrated “systems, manned guarding and key holding” support.
VSG employs 6,000 people and operates in more than 1,400 guarding locations and some 5,000 systems areas across the UK and Ireland.
Boss Phil Bentley said: “As a core part of Mitie, our security business has delivered a strong performance over the last three years, with sales growing by over 30%.
“This acquisition gives us the leadership position we seek to maximise value from our technology-led solutions.”
VSG reported revenue of £192.1 million and a pre-tax loss of £2.7 million last year. However, the firm is on track to record a small profit in 2018.
Mitie is in the second year of an overhaul under Mr Bentley, who has outlined plans to eventually slash annual costs by £50 million by 2020.
Mitie was forced to launch the wide-ranging turnaround plan after a string of profit warnings amid a torrid time for outsourcing firms following the collapse of Carillion in January.
Under the plans, Mitie is simplifying its corporate structure, outsourcing and automating some back office functions, merging its London offices into one and also investing to increase its technology capabilities.