COMPANY PRESS RELEASE: 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.