Capita plc has agreed to sell its 75% stake in York-based Fera Science Limited to Bridgepoint Group plc, for an enterprise value of £60m on a cash-free, debt-free basis. The deal values the total joint venture at £80m.
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.
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.
All current Fera senior management and employees will remain with the business when Bridgepoint becomes the new majority shareholder on completion.
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 have partnered together to grow and professionalise Fera over the past eight years, creating significant value for us and the taxpayer.
“Fera is now a vibrant and profitable commercial business, successfully serving private sector and government customers in both the UK and overseas.
“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.
“This is the latest excellent example of Capita successfully collaborating with the UK Government to commercialise and transform Government assets into valuable businesses, following previous successes including Constructionline and AXELOS.”
