Capita plc (‘Capita’) today announces that it has agreed to sell two real estate and infrastructure consultancy businesses to WSP for £60m on a cash-free, debt-free basis.
Taking into account cash-like and debt-like items, Capita expects to receive proceeds of c.£69m at completion.
The sale comprises two businesses: Capita Real Estate and Infrastructure (‘REI’) and GL Hearn (‘GLH’).
REI provides specialist advisory, design, engineering, environmental and project management services for land, building and infrastructure owners.
GLH provides advice to real estate developers, investors and occupiers across areas including planning and development, rating, valuation and occupier services.
The reported revenue and profit before tax of the two businesses 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.
The sale is subject to certain consents.
The senior management teams and employees of REI and GLH will remain with their businesses as they transfer to the ownership of WSP.
Capita previously announced its intention to sell a number of non-core businesses to strengthen the balance sheet and focus on its two core divisions, Capita Public Service and Capita Experience.
The agreement to sell REI and GLH follows the completion this year of four other sales processes: Secure Solutions and Services, AMT Sybex, our two Specialty Insurance businesses, and Trustmarque.
Total proceeds from the non-core disposal programme will be more than £800m, following completion of the REI and GLH sale.
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 is being advised on the REI and GLH transaction by Deloitte Corporate Finance.
For more information, please contact:
Investor enquiries
Stuart Morgan
Director of Investor Relations
Tel: 07989 665484
Email: IRteam@capita.co.uk
Media enquiries
Capita external communications
Tel: 0207 654 2399
Email: media@capita.co.uk
About Capita
Capita is a consulting, transformation and digital services business. Every day our 52,000 colleagues help millions of people, by delivering innovative solutions to transform and simplify the connections between government and citizens, businesses and customers. We partner with our clients and provide the insight and cutting-edge technologies that give time back, allowing them to focus on what they do best, and making people’s lives easier and simpler. We operate across three divisions – Capita Public Service, Capita Experience and Capita Portfolio – in the UK, Europe, India and South Africa. Capita is quoted on the London Stock Exchange (CPI.L). Further information can be found at: https://www.capita.com
About REI and GLH
Capita Real Estate and Infrastructure (REI) is a leading UK-based provider of specialist advisory, design, engineering, environmental and project management services for land, building and infrastructure owners.
GL Hearn (GLH) is a leading real estate business, providing cross-sector advice to developers, investors and occupiers with a strong market reputation across key service areas, including planning and development, rating, valuation and occupier services.
About WSP
WSP is a leading engineering professional services consulting firm which supports significant projects in both the built and natural environments. We provide engineering and design services to public and private sector clients in the transportation and infrastructure, property and buildings, earth and environment, power and energy, resources and industry sectors, as well as a strategic advisory offering. We have more than 50 offices across the UK and Ireland. Our team of over 7,000 technical specialists and strategic advisers in the UK is part of a talented family of more than 55,000 global changemakers, transforming what’s possible to build a smarter, greener future for all. Together, we deliver innovative solutions to solve complex problems for our clients and the communities we serve, meeting both the needs of today and addressing the challenges of tomorrow.
