Capita has agreed to sell two real estate and infrastructure consultancy businesses to WSP for £60m, on a cash-free, debt-free basis
The sale comprises Capita Real Estate and Infrastructure (‘REI’) and GL Hearn (‘GLH’).
GLH provides advice to real estate developers, investors and occupiers across areas including planning and development, rating, valuation and occupier services.
Capita expects to receive proceeds of c.£69m at completion – taking into account cash-like and debt-like items.
The sale is subject to certain consents
The senior management teams and employees of REI and GLH will remain with their businesses as ownership is transferred to WSP.
Jon Lewis, Capita’s chief executive officer, said: “We are pleased to have agreed the sale of these two businesses to WSP following a competitive sale process.
“It marks another significant step, as we continue to simplify and strengthen Capita, and become a more successful business for the long term.
“At the same time, our REI and GLH colleagues and clients will join an established industry organisation with plans to take the businesses onto the next stage of their development.
“We will continue to execute on our plan at Capita to materially reduce debt through the disposal of non-core businesses.”
Capita sells several non-core businesses
Capita previously announced that it would sell a number of non-core businesses to focus on its Capita Public Service and Capita Experience divisions.
The sale of REI and GLH follows the completion of four other sales processes this year: Secure Solutions and Services, AMT Sybex, our two Specialty Insurance businesses, and Trustmarque.
REI and GLH combined gross assets were £124.2m in 2021
The reported revenue and profit before tax of REI and GLH combined for the year to 31 December 2021 were £88.6m and £5.1m respectively. The combined gross assets were £124.2m at 31 December 2021.
Following completion of the REI and GLH sale, total proceeds from the non-core disposal programme will be more than £800m.