Mears has sold its education and health facilities management division for £18m as it accelerates its strategic shift towards core housing services.
The contractor confirmed the sale of Morrison Facilities Services Limited following a competitive sales process, marking another step in its plan to streamline operations and concentrate exclusively on the housing sector.
The transaction was completed on a debt and cash-free basis with a normalised level of working capital. Morrison Facilities Services, which primarily delivered facilities management contracts across education and healthcare settings, generated revenue of £32m and pre-tax profit of £2.8m in the year to 31 December 2025. The business had previously been reported within Mears’ maintenance-led segment.
Mears originally acquired the business in 2011 from Anglian Water Group for £24m. The latest disposal reflects a decisive repositioning of the group’s portfolio in response to evolving market conditions and long-term demand dynamics.
Chief executive Lucas Critchley said the move represented further progress in simplifying the group’s structure and aligning it with its strategic priorities. He added that the disposal reinforces Mears’ focus on delivering housing services, a market underpinned by strong regulatory drivers and sustained investment requirements.
The decision comes at a time when social housing providers and local authorities are facing increasing pressure around compliance, building safety and decarbonisation. These factors are driving significant, long-term demand for maintenance, refurbishment and asset management services across the housing estate.
By narrowing its operational focus, Mears is positioning itself to capitalise on these structural growth drivers while reducing exposure to non-core activities. The sale is expected to provide greater clarity to investors regarding the group’s direction and strengthen its ability to allocate capital and management resource towards its core housing operations.
The disposal signals a more concentrated and disciplined strategy as Mears seeks to build scale and resilience within the UK housing services market.
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