Image courtesy of Carillion

Carillion to sell healthcare business to Serco

24 October 2017 | By Construction Manager 0 Comments

Carillion has agreed to sell its healthcare FM business to Serco for £50m.

The deal is subject to third party consents and shareholder approval. Carillion aims to receive “the bulk of the proceeds” during the first half of next year.

The troubled construction and support services group said it intends to dispose of the remaining contracts in its UK healthcare FM portfolio during 2018.

It added that it is targeting further “non-core disposals with aggregate consideration anticipated of over £300m” by the end of next year.

Carillion also announced that it had secured loan facilities totalling £140m with its core lenders. It added that these facilities, together with previously agreed deferrals, gives the company between £170m and £190m of “headroom” during 2018.

Keith Cochrane, interim chief executive, said: “Today we are announcing progress on a number of fronts and whilst our customers and creditors continue to be supportive, much remains to be done.

“We remain focused on executing our disposals and cost savings programmes while continuing our discussions with our lenders and other stakeholders to explore further ways of strengthening Carillion’s balance sheet.”

Image courtesy of Carillion