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Health facilities management acquisition

Published: 24 Oct 2017

Serco Group plc ('Serco' or 'the Group'), the international service company, has signed Heads of Terms to acquire a portfolio of selected UK Health Facilities Management contracts from Carillion plc.  Once a definitive Business Purchase Agreement has been agreed, and Carillion has received the requisite third party consents and shareholders’ approval if required, the contracts will be acquired on a cash-free, debt-free basis, with the consideration to be satisfied using Serco’s existing debt facilities.  Assuming that all the contracts are transferred to Serco, the total consideration payable would be £50.1m (subject to a limited working capital adjustment), with payment largely phased as the contracts transfer.  Full transition and integration of operations is expected to be achieved by the end of 2018.  The contracts provide Facilities Management support services to over 50 NHS sites across the UK, including five acute hospital trusts.  The portfolio of contracts is profitable and has current annual revenue of approximately £90m and a weighted average remaining term of 14 years.  Further particulars will be published once the definitive Business Purchase Agreement is signed.

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