REG-Capita PLC: Disposal

CapitaAnnouncement

06/03/2023 07:15

6 March 2023

 
 

Capita agrees to sell its resourcing businesses   

Capita plc (‘Capita’) today announces that it has agreed to sell its
resourcing businesses Capita Resourcing, HR Solutions and ThirtyThree to
Inspirit Capital, for £21m on a cash free, debt free basis. 

Capita expects to receive cash proceeds of £17m – which includes a deferred
payment of c.£7m receivable by Capita on 30 November 2023. 

These businesses are some of the UK’s leading providers of human capital
resourcing services to both the public and private sectors. The senior
management teams and employees will remain with their businesses as they
transfer to the ownership of Inspirit Capital.  

The reported revenue and profit before tax of the combined businesses for the
year to 31 December 2022 were £78m and £10m  respectively and gross assets
were £35m at 31 December 2022. 

The sale to Inspirit Capital is subject to National Security and Investment
Act approval. 

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
these resourcing businesses follows the recent disposal of our Pay360 payments
processing business, two real estate and infrastructure consultancy
businesses, as well as Optima Legal, and Capita Translation and
Interpreting. 

Jon Lewis, Capita’s Chief Executive Officer, said: “We are pleased to have
agreed the sale of our resourcing services businesses to Inspirit Capital,
following a competitive sale process. The transactions offer significant
growth opportunities for the businesses, their clients and colleagues. 

“It also marks another significant step towards reducing Capita’s debt, as
we continue to simplify and strengthen the organisation, and become a more
successful business for the long term. We remain focused on selling the
majority of the remaining non-core Portfolio businesses throughout the first
half of 2023 depending on general market conditions.” 

Capita is being advised on the transaction by Rothschild & Co. 

For more information, please contact:

Investor enquiries
Helen Parris
Director of Investor Relations
Tel: 07720 169269

Email: IRteam@capita.co.uk

Media enquiries
Capita external communications
Tel: 0207 654 2399
Email: media@capita.co.uk 
 

About Capita plc

Capita is a leading provider of business process services, driven by data,
technology and people. We are a purpose-led, responsible organisation­. Every
day our 50,000 colleagues help millions of people, by delivering innovative,
digitally enabled solutions to transform and simplify the connections between
government and citizens, businesses and customers. We partner with our clients
and provide the insight and 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: http://www.capita.com

About the resourcing businesses

Capita Resourcing Ltd, HR Solutions and ThirtyThree became part of Capita’s
non-core Portfolio division in August 2021. Together, these businesses offer
a modular and agile set of human resourcing services that can be deployed
according to a client’s need. They support nearly 2,000 clients, including
Capita itself, in addressing the challenges of attracting, hiring and
retaining talent.

About Inspirit Capital

Inspirit Capital is a London-based private equity firm that has led numerous
successful carve-out investments across a wide range of industry sectors.
Their mission is to build long-term value during and beyond their period of
ownership, whilst providing energy and proactive support to management teams
along the way. They have a strong track record of enabling growth for their
businesses in a standalone, entrepreneurial environment.

 

Ends



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