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Mon October 15 2018

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Interserve sells painting and scaffolding unit

2 Oct Interserve has agreed the sale of its industrial access and hard services business to Enigma Industrial Services Holdings Ltd for £3.6m.

The division being sold, Interserve Industrial Services (IIS), provides scaffolding services to house-builders and other contractors as well as scaffolding, insulation & painting (SIP) services to large industrial sites. It turned over £67m last year.

It comes under Interserve’s Support Services business, rather than construction, and has become considered non-core. Together with the closure of Interserve Industrial Services’ power activities earlier this year, this sale concludes Interserve's exit from its industrial contracting activities.

Scott Hardie will continue to lead the business as managing director.  

The £3.6m purchase price could yet swell by a further £1m, subject to achieving certain targets. The sale proceeds will be used to reduce Interserve's debt.

For the year ended 31st December 2017, Interserve Industrial Services reported an operating loss of £4m and had gross assets of £47.3m. The transaction will result in a loss on disposal of £8.4m for Interserve. 

Interserve chief executive Debbie White said: "We are pleased to announce the sale of the access and hard services business as part of Interserve's strategy to focus on core customer segments."

MPU

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