Serco Group plc completed the acquisition of UK healthcare facilities management business from Carillion plc
June 28, 2018
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Serco Group plc (LSE:SRP) entered into a letter of intent to acquire UK healthcare facilities management business from Carillion plc (LSE:CLLN) for £50.1 million on October 24, 2017. Serco Group plc (LSE:SRP) signed a definitive business purchase agreement to acquire UK healthcare facilities management business from Carillion plc (LSE:CLLN) for £47.7 million on December 13, 2017. Serco Group plc (LSE:SRP) signed a revised business purchase agreement to acquire UK healthcare facilities management business from Carillion plc (LSE:CLLN) for £29.7 million on February 14, 2017. The consideration is subject to a limited working capital adjustment and a limited adjustment in the event that the contracts are transferred ahead of or behind an assumed schedule. Business will be acquired on a cash-free, debt-free basis. The consideration will be satisfied using Serco's existing debt facilities. As of February 14, 2018, the change in consideration reflects Serco's re-evaluation of potential liabilities, indemnities, warranties and the additional working capital investment required as a result of Carillion's liquidation. As of December 13, 2017, the contracts to be acquired will be integrated within Serco's existing UK Health business unit. UK healthcare facilities management business generated annual revenue of £90 million in 2016. The acquisition is subject to third party consents, and, if required, shareholder approval. The agreement is expected to be signed in next few weeks. As of December 13, 2017, full transition of operations is targeted to be achieved by the end of 2018 and the business being acquired is expected to generate around £8 million underlying trading profit and therefore be significantly accretive to earnings following integration into Serco. Charles Armitstead and Haya Herbert-Burns of Teneo Blue Rubicon acted as a public relations advisor while Lazard & Co., Limited acted as lead financial advisor to Carillion. EY acted as an accountant to Carillion Plc.
Serco Group plc (LSE:SRP) completed the acquisition of UK healthcare facilities management business from Carillion plc (LSE:CLLN) on June 29, 2018.
Serco Group plc is a United Kingdom-based provider of public services. The Company is specializing in the delivery of essential public services, with people working in defense, transport, justice, immigration, healthcare and other citizen services. The Companyâs operating segments include UK & Europe, Americas, AsPac, Middle East and Corporate. Its UK & Europe segment offers services for sectors, including Citizen services, defense, health & other facilities management, justice & immigration, and transport delivered to UK government, UK devolved authorities and other public sector customers in the UK and Europe. Americas segment offers services for sectors, including citizen services, defense and transport delivered to US federal and civilian agencies, selected state and municipal governments and the Canadian government. Middle East segment offers services for sectors, including citizen services, defense, health & other facilities management, and Transport in the Middle East region.