Last checked at 6 Mar 2023 07:00
Capita plc - DisposalCapita plc - Disposal
PR Newswire
London, March 5
6 March 2023
Capita agrees to sell its resourcing businesses
Capita plc (‘Capita’) today announces that it has agreed to sell its resourcing businesses Capita Resourcing, HR Solutions and ThirtyThree to Inspirit Capital, for £21m on a cash free, debt free basis.
Capita expects to receive cash proceeds of £17m – which includes a deferred payment of c.£7m receivable by Capita on 30 November 2023.
These businesses are some of the UK’s leading providers of human capital resourcing services to both the public and private sectors. The senior management teams and employees will remain with their businesses as they transfer to the ownership of Inspirit Capital.
The reported revenue and profit before tax of the combined businesses for the year to 31 December 2022 were £78m and £10m respectively and gross assets were £35m at 31 December 2022.
The sale to Inspirit Capital is subject to National Security and Investment Act approval.
Capita previously announced its intention to sell a number of non-core businesses to strengthen the balance sheet and focus on its two core divisions, Capita Public Service and Capita Experience. The agreement to sell these resourcing businesses follows the recent disposal of our Pay360 payments processing business, two real estate and infrastructure consultancy businesses, as well as Optima Legal, and Capita Translation and Interpreting.
Jon Lewis, Capita’s Chief Executive Officer, said: “We are pleased to have agreed the sale of our resourcing services businesses to Inspirit Capital, following a competitive sale process. The transactions offer significant growth opportunities for the businesses, their clients and colleagues.
“It also marks another significant step towards reducing Capita’s debt, as we continue to simplify and strengthen the organisation, and become a more successful business for the long term. We remain focused on selling the majority of the remaining non-core Portfolio businesses throughout the first half of 2023 depending on general market conditions.”
Capita is being advised on the transaction by Rothschild & Co.
For more information, please contact:
Investor enquiriesHelen ParrisDirector of Investor RelationsTel: 07720 169269
Email: IRteam@capita.co.uk
Media enquiriesCapita external communicationsTel: 0207 654 2399Email: media@capita.co.uk
About Capita plc
Capita is a leading provider of business process services, driven by data, technology and people. We are a purpose-led, responsible organisation. Every day our 50,000 colleagues help millions of people, by delivering innovative, digitally enabled solutions to transform and simplify the connections between government and citizens, businesses and customers. We partner with our clients and provide the insight and technologies that give time back, allowing them to focus on what they do best and making people’s lives easier and simpler. We operate across three divisions – Capita Public Service, Capita Experience and Capita Portfolio – in the UK, Europe, India and South Africa. Capita is quoted on the London Stock Exchange (CPI.L). Further information can be found at: http://www.capita.com
About the resourcing businesses
Capita Resourcing Ltd, HR Solutions and ThirtyThree became part of Capita’s non-core Portfolio division in August 2021. Together, these businesses offer a modular and agile set of human resourcing services that can be deployed according to a client’s need. They support nearly 2,000 clients, including Capita itself, in addressing the challenges of attracting, hiring and retaining talent.
About Inspirit Capital
Inspirit Capital is a London-based private equity firm that has led numerous successful carve-out investments across a wide range of industry sectors. Their mission is to build long-term value during and beyond their period of ownership, whilst providing energy and proactive support to management teams along the way. They have a strong track record of enabling growth for their businesses in a standalone, entrepreneurial environment.
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