Capita plc (LON:CPI) announced today that it has reached an agreement to sell its parking management business, ParkingEye, to a vehicle owned by Macquarie and funds advised by MML Capital Partners for a cash consideration of £235m. The transaction is expected to close later this year.
The transaction is in line with Capita’s strategy of simplifying the business, focusing on growth markets and disposing of non-core businesses.
ParkingEye’s underlying revenue and operating profit were £40m and £14m respectively in the year to 31 December 2017 and the business had gross assets of £22m. In Capita’s half year results, ParkingEye will be reported as a business exit in non-underlying items. The cash proceeds will be used to reduce net indebtedness.
Jon Lewis, Chief Executive Officer, Capita, said “This transaction marks a further step in executing the strategy announced in April aimed at simplifying and strengthening the business to deliver future success.
Together with the four disposals already completed this year, we now expect to raise more than £400m from non-core disposals in 2018, well ahead of our target of £300m.”
Goldman Sachs International acted as Capita’s sole financial advisor on the transaction.