Capita continues sell-off with £62m offload of environmental testing arm
Outsourcing firm Capita is selling its 75 per cent stake in Fera Science, as the firm continues its strategy to simplify its business model.
The deal sees the firm selling its stake to private investment company, Bridgepoint Group, for cash proceeds of £62m upon completion.
Fera Science specialises in environmental testing, research, and advisory and assurance services for both the public and private sectors.
Capita’s stake in Fera Science was a joint venture with the Department for Environment, Food & Rural Affairs (Defra) (25 per cent), which was acquired in 2015. It was reported at the time that Capita paid £20m for its 75 per cent share.
As part of the transaction, Defra is retaining its shareholding.
Capita consolidates Fera in its consolidated financial statements. For the year to 31 December 2022, its reported revenue was £45m and profit before tax was £3m.
The sale of Fera comes after the firm sold its travel and events businesses Agiito and Evolvi to Clarity Travel, which was completed on 14 November.
Late last month, the firm announced it kicked off a programme that is set to make approximately 900 roles at risk of redundancy as the company tries to cost save.
Speaking on today’s news, Jon Lewis, Capita’s CEO, said: “We had previously announced our intention to sell our stake in Fera, as part of our ongoing strategy to simplify and strengthen Capita. It was the appropriate time to find a new partner to build on the strong, successful foundations now in place at Fera and take the company onto the next stage of its development.”
He also explained: “I am particularly delighted that, subject to successful completion of this transaction and our travel businesses, which completed on 14 November, we will have completed our non-core disposals programme. These disposals have enabled us to significantly strengthen the balance sheet and materially reduce our debt.”