Outsourcing giant plans £700m asset sale

Wed, 14 Mar 2018 | DIVISION SALE

One of the country’s largest outsourcing players, Capita, is planning to sell off nearly £700 million worth of assets, as well as a discounted rights issue for the same sum, in order to stave off spiralling debt.

The move comes as Capita welcomes a new chief executive, Jonathan Lewis, who previously overhauled operations at oil services firm Amec Foster Wheeler. He has previously warned that the outsourcer has underinvested and relied on making acquisitions to fuel its growth.

Capita is in a bad way at present, after a profit warning issued earlier this year saw the group wipe almost half of its market value to £1.1 billion.

Lewis has said his new company needs cash as soon as possible, and is believed to be exploring several options as part of a wider review that could result in six or seven of Capita’s subsidiaries being sold.

In January, it was announced that two non-core companies - Constructionline and ParkingEye - would be sold off. The other businesses could be worth up to £700 million and will be sold off in stage, while a new rights issue could see a total of £1.4 billion of resh capital ranged.

The firm’s outstanding contracts range from customer services for Tesco Mobile to far more lucrative deals for helping the British Army recruit fresh blood.

So far, Lewis says he has been approached by 120 potential bidders interested in making an acquisition.

Apart from the proposed sales, Capita has hired the consultancy McKinsey & Co to work on its strategy and Bain & Co to help drop costs.

Capita’s business leaders have been quick to point out that the firm is not in the same position as beleaguered sector-mates Carillion or Interserve, two companies caught out by the toxic climate for outsourcing firms.


Share this article



Latest Businesses for Sale

Access Control Systems & CCTV Consultancy
Hertfordshire, South East, UK

Offers an extensive range of specialist property development solutions. Provides a multitude of security systems, including installation and maintenance. Works with circa 140 active clients, 85% of whom provide repeat business. Offered for sale to fa...

Asking Price: Offers Invited
Turnover: £530,000

FREEHOLD


Telegraph Pole & Fibre Optic Installation & Replacement Services
UK Wide

Works with national communications networks and utility companies to provide rapid, reliable telegraph and utility pole services. Operates nationally, predominantly working with clients based across the Midlands. Works with market-leading, blue-chip...

Asking Price: Offers Invited
Turnover: £2,450,000

LEASEHOLD


Passive Fire Protection Specialist
UK Wide

Supplies and installs a range of comprehensive passive fire protection systems in buildings throughout the UK. Services offered include structural steel protection, fire stopping, acoustic and air sealing and soffit insulation. In addition to its cor...

Asking Price: Offers Invited
Turnover: £6,390,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
08
 
Apr
 

Insurance broker bought out of administration | BUSINESS SALE

Flintshire-based insurance broker Staveley Head has been acq...

 
07
 
Apr
 

Treasury plan to save medium-sized businesses by taking emergency stakes | BUSINESS NEWS

The Treasury is understood to be considering user taxpayer m...

 
07
 
Apr
 

Clarks makes store closures and explores financing opportunities | COMMERCIAL PROPERTY

Footwear retailer Clarks has confirmed that it will close a ...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
27
 
Mar
 

Addison Lee acquired by consortium of investors | BUSINESS SALE

Addison Lee Group, London’s biggest private care hire ...

 
17
 
Mar
 

Walmart closing in on Asda sale | BUSINESS SALE

American retail giant Walmart is closing in on a sale of UK ...

 
18
 
Feb
 

Subprime lender Amigo launches sale process | BUSINESS SALE

UK subprime lender Amigo has announced that it is in talks w...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources