In October 2017, deep in distress, Carillion agreed to sell the bulk of its UK healthcare facilities management business to Serco for £50.1m. By December 2017, when the definitive business purchase agreement for the transfer of assets was signed, the agreed price was £47.7m.
Carillion then filed for liquidation on 15th January 2018.
Today Serco announced that it had signed a revised business purchase agreement with Carillion’s liquidators and special managers at PwC; the price now is just £29.7m.
Serco said that the reduced price “reflects Serco's re-evaluation of potential liabilities, indemnities, warranties and the additional working capital investment required as a result of Carillion's liquidation”.
The 15 contracts to be acquired by Serco provide facilities management services to NHS sites across the UK, covering five acute hospital trusts and around 20 other public sector organisations. The portfolio has current annual revenues of approximately £90m.
Under the deal, each individual contract will be transferred to Serco on a cash-free, debt-free basis.