Tuesday, 30 May 2017

Capita to sell recruitment arm to Endless


The troubled outsourcing group Capita is in advanced talks about the sale of its recruitment division as it seeks to reshape itself under a new leadership team.
Sky News has learnt that Capita, which lost its FTSE-100 status following a tumultuous 2016, has entered exclusive negotiations to offload the business to Endless, a specialist turnaround investor.

The talks are understood to value Capita Specialist Recruitment at roughly £25m, according to people close to the sale process, which is being handled by the professional services firm BDO.

The division handles recruitment activity in areas such as social care, IT, education and energy.

While the price is not material to Capita, investors and analysts are likely to interpret a deal as evidence that a turnaround plan under the company's new chairman, Ian Powell, is starting to gather pace.

Sources said an announcement about the sale to Endless was likely in the coming weeks.

It will come as Capita progresses the auction of its much larger fund administration unit, which could fetch more than £600m.

A number of bidders including CVC Capital Partners and Link, an Australian company, are in the closing stages of that sale process.

The disposals come as Mr Powell conducts a search for a new chief executive of the company, which has roles in activities such as monitoring London's congestion charge and supervising the collection of the TV Licence Fee.

SKY     News.