The transaction is in line with Capita’s strategy of simplifying the Company, focussing on key growth markets and disposing of non-core businesses, as announced on 23 April 2018. Net cash proceeds from the disposal will be used to reduce indebtedness.
Capita has successfully managed, invested in and commercialised Supplier Assessment Services and rapidly grown the business, particularly since acquiring Constructionline in January 2015, having previously operated it as a concession.
Supplier Assessment Services underlying revenue and operating profit were £14m and £6m respectively in the year to 31 December 2017 and the business had gross assets of £26m. Supplier Assessment Services’ results in 2018 will be reported as a business exit in non-underlying items.
This transaction marks a further step in executing the strategy announced in April aimed at simplifying and strengthening the business to deliver future success and contributing to realising £300m from non-core disposals in 2018.
Chief Executive Officer, Capita
Goldman Sachs International acted as sole financial advisor on the transaction.