Business
Capita agrees to sell stake in Fera and compl...
Capita agrees to sell stake in Fera and compl....
About this update from Capita Plc
[{"type":"text","content":"\n\n \n \n\n\n\n\n 4 December 2023Capita agrees to sell stake in Fera and completes non-core disposal programmeCapita plc (‘Capita’) today announces that it has agreed to sell its 75% stake in Fera Science Limited (‘Fera’) to Bridgepoint Group plc (‘Bridgepoint’), for an enterprise value of £60m on a cash-free, debt-free basis. The deal values the total joint venture at £80m and represents a 10.8x multiple on a 2022 standalone EBITDA of £7.4m1. The sale of Capita’s 75% interest in Fera, a joint venture with the Department for Environment, Food & Rural Affairs (Defra), will result in Capita receiving cash proceeds of £62m upon completion. These cash proceeds include cash and debt-like items and working capital adjustments.This will provide additional liquidity to further strengthen Capita’s balance sheet and support investment across the Group.Fera was established in 2015 as a joint venture between Capita (75%) and Defra (25%) to create a financially sustainable business, focused on the agriculture, farming and food production market. It specialises in environmental testing, research, and advisory and assurance services for both the public and private sectors. Capita consolidates Fera in its consolidated financial statements. The reported revenue and profit before tax for the year to 31 December 2022 were £45m and £3m respectively. Gross assets were £37m at 30 June 2023.National Security and Investment Act clearance has been secured as a condition to enable completion to take place. As a condition precedent to completion, changes being made to the title of the property from which Fera operates require consent from the superior landlord. This consent process has commenced. As part of the transaction, Defra is retaining its shareholding.All current Fera senior management and employees will remain with the business when Bridgepoint becomes the new majority shareholder on completion.The sale of Fera and of our travel businesses, which completed on 14 November, marks the successful end of non-core disposals from Capita’s Portfolio division as part of a strategy to simplify and strengthen the business around two core markets. Jon Lewis, Capita’s Chief Executive Officer, said: “We are very pleased to have agreed the sale of our stake in Fera after a competitive auction process.“Capita and Defra ha...