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

Security & Safety Systems Supplier & Installer
West Midlands, UK

Specialises in the installation, servicing and maintenance of a wide range of security and safety systems. Installs and services fire alarms, CCTV, access controls, door entry systems and intruder alarms. Offer invited.

Asking Price: Offers Invited
Turnover: £1,200,000

LEASEHOLD


Sweeper Hire Specialist
North of England, UK Wide

Core services provided by the business include road sweeping, drain jetting, gully emptying, jet washing and airport sweeping. Strong second-tier management team able to manage the day-today operations of the business. Offers invited.

Asking Price: Offers Invited
Turnover: £2,500,000

FREEHOLD


Manned Guarding Security Business
Central London, South East, UK

Long time established security business which provides highly trained manned guarding operatives to its blue chip clientele. The company provides a total security solution for its high profile corporate clientele. Operating in the premium sector. Of...

Asking Price: £1,350,000
Turnover: £3,400,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
23
 
Jul
 

Award-winning American diner put up for sale | BUSINESS SALE

An award-winning 50s-style American diner in Albert Village,...

 
22
 
Jul
 

Ayr Artwork firm goes into administration | BUSINESS SALE

The Steve Brown art company has announced that it has entere...

 
19
 
Jul
 

Outdoor activity centre completes MBO | BUSINESS SALE

An outdoor water activity centre has been successfully sold ...

Free guide: 10 Biggest Buyer Mistakes

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

Email


Related News

 
16
 
Jul
 

Farsound Aviation sold to AGIC for £115 million | BUSINESS SALE

A supply chain management company operating in the aviation ...

 
01
 
Jul
 

UK arm of Italian fashion brand collapses into administration | ADMINISTRATION

With over 400 retail and franchise stores operating across t...

 
22
 
May
 

Suppliers expected to follow British Steel into insolvency | ADMINISTRATION

News that British Steel is to be placed into the hands of ad...

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