Capita sells GL Hearn to WSP

Capita has sold property consultancy GL Hearn to engineering giant WSP as part of a £60m deal. The firm is being sold along side Capita Real Estate and Infrastructure on a cash-free, debt-free basis. Capita bought planning expert and property consultancy GL Hearn in 2015 for £30m as part of plans to win more major infrastructure work. Capita chief executive Jon Lewis said the sales marked “another significant step” for the business as it seeks to simplify and strengthen Capita. He added: “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.” WSP said the acquisition was in line with its global action plan and would increase its total strength to approximately 9,000 employees in the UK, expanding the firm’s expertise across property and buildings; water, energy and industry; transport and infrastructure; and earth and environment. WSP UK and EMEA chief executive Mark Naysmith said: “This is an exciting time for WSP as we grow in line with the ambitious targets set in our 2022-24 strategy.  The addition of the Capita Real Estate and Infrastructure and GL Hearn businesses to WSP’s portfolio will increase our expertise across strategically important growth markets, enhancing the delivery of current projects and accelerating our expansion into new sectors.” 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 senior management teams and employees of REI and GL Hearn 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 GL Hearn follows the completion this year of four other sales processes: Secure Solutions and Services, AMT Sybex, 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. The acquisition is expected to formally close in six to eight weeks. Capita is being advised on the REI and GLH transaction by Deloitte Corporate Finance. To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews Image from Capita