Acquisition
Capita Group PLC
17 December 2001
17 December 2001
Capita acquires the Industrial Society's
workforce training and development business
The Capita Group Plc ('Capita') announces that it has acquired the Industrial
Society's ('the Society's') workforce training and development business for a
maximum consideration of £23.75 million. The business will be combined with
Capita's existing HR businesses. Capita and the Society are also developing a
strategic alliance, which will bring benefits and services to the clients,
customers and networks of both organisations.
The initial consideration of £23 million is being satisfied in cash. A
further £750,000 may be paid in March 2003, dependent on the business'
performance. The business reported revenues of £14 million and unaudited
proforma profits of £3 million for the year ended June 2001. The business
will transfer with no net assets. The acquisition is expected to be earnings
enhancing in 2002.
The Industrial Society's workforce training and development business runs over
150 courses and trains over 50,000 people a year. It is long established and
nationally recognised as a market leader in the creation and delivery of
workforce development solutions. It has over 6,000 clients spread widely
throughout the private and public sector. The business has a high customer
satisfaction rating with resultant strong retention levels.
Expanding access to workforce training is firmly on the Government agenda and
has the widespread backing of employer bodies. It is expected that over the
next 5 years expenditure on this area by organisations will significantly
increase. The acquired business is well placed to take advantage of these
developments and enables Capita to further strengthen its integrated HR
offering to the market.
Rod Aldridge, Executive Chairman of the Capita Group Plc, commented:
'Organisations are increasingly seeking external providers to help them
effectively support and develop their key resource - their people. This
acquisition enhances Capita's existing HR development and support services,
strongly positioning us in this marketplace.
'Capita now has an unrivalled breadth and depth of HR expertise and service
offering that mirrors organisations' growing HR requirements. Such levels of
expertise and support are increasingly difficult to replicate in-house,
driving organisations to seek outsourced solutions. This is reflected in the
increased levels of business and interest that Capita is experiencing in HR
outsourcing, a market estimated to have a potential value of £10 billion in
the UK.
'We are very positive about the benefits of this acquisition and the benefits
that will flow from the strategic alliance for Capita, the Industrial Society,
our customers and members. Capita is now well positioned at the centre of
developments in this field.'
Will Hutton, Chief Executive, Industrial Society, commented:
'We are confident that The Industrial Society's learning and development
business will have a dynamic future within the Capita Group and welcome the
possibilities that exist in the developing alliance between the two
organisations. This will allow The Industrial Society to remain linked to its
training heritage and will bring advantages to both organisations and the
people we work with.'
-ends-
For further information, please contact:
The Capita Group Plc 020 7799 1525
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Group Marketing Director
Capita Press Office 020 7544 3141
Industrial Society 020 7479 2111/2107
Memuna Forna
Issued by Finsbury 020 7251 3801
Morgan Bone
Mark Harris
NOTES TO EDITORS
The Capita Group Plc is a leading provider of integrated professional support
service solutions. The Group's service capabilities encompass customer
services, insurance services, human resource services, software services,
systems and strategic support and property services delivered to both public
sector and private organisations. With over 13,000 people at over 160 UK
sites, Capita is quoted on the London Stock Exchange with market brokers'
forecast revenues for 2001 of £690 million. Capita became a FTSE 100 company
in March 2000. In November 2001 Capita was awarded the Management Today Most
Admired Business Services Company Award.
Recent contract wins include the administration of TV Licensing for the BBC,
creation and administration of the new Criminal Records Bureau certification
service for the Home Office, the infrastructure set up, management and
development of the new national Connexions Card service for 16-19 year olds
for the Department for Education and Skills (DfES) and the administration and
infrastructure transformation of Abbey National's general insurance
operations. For more information on the Capita Group, please visit our
website: www.capita.co.uk
The Industrial Society focus on the world of work. Everything they do - from
consultancy to research, from leadership to advocacy, from education to
advisory services, is driven by their commitment to improve working life. It
is a wholly independent, not-for profit body and holds Royal Charter status.
Its members include companies of every size, from every sector of the economy,
along with public sector organisations, charities and trade unions.
The Industrial Society can be found at www.indsoc.co.uk
Latest directors dealings
- 40 seconds ago Rotork
- 13 minutes ago Sabre Insurance Group
- 23 minutes ago Aurrigo International
- 47 minutes ago Savills
- 1 hour ago Everyman Media Group