Serco Group plc (Serco), the international service company, has completed the sale of its UK occupational health business in a transaction with the management team for consideration of £3.5m. The transaction is in line with Serco's strategy to proactively manage its portfolio, assessing operations for strategic fit together with their expected performance and returns.
The disposed business provides occupational health services to 450,000 client employees in the private and public sectors in the UK. Under Serco's continued ownership, future growth was expected to be restricted due to limited synergies with our core health business which includes operations in community healthcare, non-clinical support services and health Business Process Outsourcing (BPO) services.
For the year to 31 December 2012, the financial result of the business was approximately £15m of revenue and £1m of Adjusted operating profit. The provisional value of net assets being disposed of is approximately £6m. After disposal-related costs, the exceptional accounting loss on disposal is expected to be approximately £4m.
Christopher Hyman, Chief Executive of Serco Group plc, said: "I would like to thank our colleagues for their hard work and commitment in developing our occupational health business. However, this has become non-core to the future development of Serco's Health portfolio and further progress of the occupational health business can be more successfully achieved under alternative ownership. We remain committed to serving and developing our core health operations such as community healthcare, non-clinical support services and BPO services, whilst also transferring capabilities to new regions where we see the greatest opportunities as part of our strategy to build a balanced portfolio in markets and geographies around the world."