The planned Serco acquisition of a portfolio of NHS FM contracts from Carillion is to go ahead, but at a vastly reduced price.
In December, Serco announced it had signed a Business Purchase Agreement (BPA) to acquire 15 of the contracts which saw Carillion providing facilities management services to NHS sites, including five acute Trusts and around 20 other public sector organisations. At the time, the consideration payable was to be £47.7m, but today’s announcement that a revised BPA has been signed confirms the amount payable as £29.7m. As before, the contracts will transfer on a cash-free, debt-free basis.
Serco says the change in the consideration paid reflects its re-evaluation of potential liabilities, indemnities, warranties and the additional working capital investment required as a result of Carillion’s liquidation.
The portfolio of contracts has current annual revenues of approximately £90m. Serco plans to integrate them within its existing UK Health business unit, which includes recent wins at Barts Health NHS Trust and University Hospital Southampton NHS Foundation Trust, has annual revenues of around £240m.
Serco also has an international Health operation, including significant contracts in Abu Dhabi, Australia and Hong Kong.
