Capita PLC Disposal
19 June 2018 - 4:00PM
UK Regulatory
TIDMCPI
Capita announces the disposal of Supplier Assessment Services including
Constructionline
Capita plc (Capita) announces today that it has reached an agreement to sell
Supplier Assessment Services, including Constructionline, to funds affiliated
with Warburg Pincus. On completion, which is expected to be early July 2018,
Capita will receive GBP160m in cash. 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 GBP14m
and GBP6m respectively in the year to 31 December 2017 and the business had gross
assets of GBP26m. Supplier Assessment Services' results in 2018 will be reported
as a business exit in non-underlying items.
Jon Lewis, Chief Executive Officer, Capita, said "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 GBP300m from non-core disposals in 2018."
Goldman Sachs International acted as sole financial advisor on the transaction.
This announcement contains inside information.
ENDS
Notes to editors:
Supplier Assessment Services is one of the UK's largest procurement, health &
safety accreditation and supply chain management services, reducing the annual
cost for buyers and suppliers, particularly SMEs, of repeatedly providing
pre-tender information in the public and private sectors. Supplier Assessment
Services includes Constructionline, Acclaim and Safety Climate Tool.
For further information:
Capita plc: Investor enquiries
Andrew Ripper, Head of Investor Relations
Fiona O'Nolan, Investor Relations Director
Tel: 020 7654 0220 or 020 7654 2281
IRTeam@capita.co.uk
Media enquiries:
Capita Press Office 020 7654 2399
media@capita.co.uk
Capita is a leading provider of technology enabled business services, operating
across five key markets: Software; People Solutions; Customer Management; IT
Services and Government Services. Working across the UK, Europe, India and
South Africa, we use our expertise, talent and technology to partner with our
clients to transform services and add value for all their stakeholders. Capita
is quoted on the London Stock Exchange (CPI.L). Further information on Capita
can be found at: http://www.capita.com
Goldman Sachs International, which is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority in the UK, is acting exclusively for Capita plc and no one
else in connection with the potential sale of Supplier Assessment Services
Limited and any other matter referred to in this announcement and will not be
responsible to anyone other than Capita plc for providing the protections
afforded to clients of Goldman Sachs International, or for providing advice in
relation to the potential sale of Supplier Assessment Services Limited or any
other matter referred to in this announcement.
LEI no. CMIGEWPLHL4M7ZV0IZ88.
END
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