11th Feb 2015 09:54
LONDON (Alliance News) - FTSE 100-listed support services company Capita PLC on Wednesday said it has been named as the preferred bidder for the Food and Environment Research Agency joint venture by the UK Department for Environment, Food and Rural Affairs.
As part of the deal, the joint venture between Capita and DEFRA has secured a long-term service agreement for up to 10 years to deliver services on behalf of DEFRA, its network and the Health and Safety Executive. The deal also includes a 10-year supplier framework under which scientific services can be bought directly by other crown bodies.
Under the deal, Capita will acquire a 75% stake in the joint venture for GBP20 million in cash.
The forecast commercial growth against targeted markets is expected to allow the joint venture to generate at least GBP700 million in revenue over the first ten years.
The Food and Environment Research Agency provides scientific services to government and commercial customers, such as food retailers and manufacturers of crop protection products, in the UK and overseas.
"The excellent science being carried out by staff at FERA has not yet been able to reach its full commercial potential because of obvious limits on investment, recruitment and marketing," said Capita Chief Executive Andy Parker.
"Capita's commercial know-how will complement the FERA team's scientific expertise, helping it to grow the scientific capability it can offer existing and new customers," Parker added.
Capita shares were down 0.4% to 1,153.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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