Capita to sell REI consultancy businesses to WSP
Capita agrees to sell real estate and infrastructure consultancy businesses.
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.