Capita preferred bidder for Fera joint venture

11 February 2015 Capita preferred bidder for Fera joint venture Capita plc (Capita) has been selected, following a competitive procurementprocess, to form a joint venture with the Department for Environment, Foodand Rural Affairs (Defra) to operate the Food and Environment Research Agency(Fera). As part of the agreement, the joint venture has secured a long termservice agreement for up to 10 years, to deliver services for Defra, itsnetwork and the Health and Safety Executive (HSE), and a 10 year supplierframework through which scientific services can be bought directly by othercrown bodies. In support of the Government's programme of commercialising certain publicassets, Capita will acquire a 75% stake in the joint venture for £20m in cashand will use its infrastructure and expertise to enhance Fera's ability todeliver scientific benefit to the public and return value to the taxpayer.Forecast commercial growth against specific, targeted markets is expected toenable the joint venture to achieve at least £700m revenue over its first 10years. Growth will be generated through existing agreements with the publicsector, securing new public sector work and by further developing services toachieve greater penetration of the commercial market. Fera already generatesannual turnover of around £40m. Fera provides scientific services to government and commercial customers, suchas food retailers and manufacturers of crop protection products, in the UK andoverseas, employing nearly 400 scientists at a site near York. It specialisesin translating scientific knowledge into practical applications, such ashelping to ensure food safety and quality `from farm to fork', sustainable cropproduction, environmental management and conservation. It also plays a key rolein the UK's ability to respond to, and recover from, emergency situationsaffecting the food chain and rural economy. Capita will establish an institute with Newcastle University to ensure stronglinkage between Fera, academia and scientific research and development, drivinginnovation and creating a centre of excellence for UK scientific partnershipand research. As a result of the joint venture and this partnership more than50 new, highly specialist scientific roles will be created in York. Capita chief executive, Andy Parker, said: "The excellent science being carriedout by staff at Fera has not yet been able to reach its full commercialpotential because of obvious limits on investment, recruitment and marketing. "Capita's commercial know-how will complement the Fera team's scientificexpertise, helping it to grow the scientific capability it can offer existingand new customers. Working together, we will create a more efficient andimproved organisation allowing scientists to focus on the science and itsdelivery. "Crucially, the additional capabilities of Capita and its partners, includingNewcastle University, will enable the joint venture to drive commercial andgovernment sector growth. This market is full of opportunity and we anticipatecumulative revenue to the joint venture to progress to at least £700m by year10. "The science services market is one we've been excited about for some time andwe see this joint venture as laying the foundation for an additional growthmarket for Capita." -ends- For further information:Capita plcTel: 020 7799 1525Andy Parker, Chief Executive OfficerShona Nichols, Corporate Communications Director Media enquiries only:Capita press officeCaroline MooneyTel: 020 7654 2152 or 020 7654 2399 (out of hours)Email: [email protected] Note to editors Capita plc is the UK's leading provider of BPO and integrated professionalsupport service solutions. With 64,000 people at over 400 sites, including 73business centres across the UK, Europe, India and South Africa, the Group usesits expertise, infrastructure and scale benefits to transform its clients'services, driving down costs and adding value. Capita is quoted on the LondonStock Exchange (CPI.L), and is a constituent of the FTSE 100 with 2013 revenueof £3.9 billion. Further information on Capita plc can be found at:www.capita.co.uk