Capita disposes of two more businesses as sale of 'non-core' assets continues

Capita expects to receive proceeds of £69m at completion

Capita has agreed to sell two more of its businesses for £60m as part of its intentions to sell a number of its ‘non-core' companies.

The professional services giant confirmed its most recent sale to WSP comprises of its Capita Real Estate and Infrastructure (‘REI') and GL Hearn (‘GLH') businesses.

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 senior management teams and employees of REI and GLH will remain with their businesses as they transfer to the ownership of WSP.

The reported revenue and profit before tax of the two companies combined for the year to 31 December 2021 were £88.6m and £5.1m respectively.

Taking into account cash-like and debt-like items, Capita expects to receive proceeds of £69m at completion.

The sale is subject to certain consents.

Jon Lewis, Capita's CEO, said: "We are pleased to have agreed the sale of these two businesses to WSP following a competitive sale process.

"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."

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, 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, Capita said.

Lewis added: "It marks another significant step, as we continue to simplify and strengthen Capita, and become a more successful business for the long term.

"We will continue to execute on our plan at Capita to materially reduce debt through the disposal of non-core businesses."