Mitie offloads social care businesses to Apposite Capital for £2
Struggling outsourcing firm Mitie has offloaded its social care businesses for the nominal sum of £2 to private equity outfit Apposite Capital.
Mitie, which has announced a string of recent profit warnings, also said it will pay a £9.45 million dowry to Apposite to take the Enara and Complete Care brands off its hands.
It will also book a £37 million charge as a result of the deal.
The company announced in November it is withdrawing from the domiciliary healthcare market and placed its healthcare operations under strategic review.
The firm has written off over £100 million of goodwill as a result of the move.
Enara, which trades as MiHomecare, provides care at home for people who require help and support due to illness, infirmity or disability and undertakes approximately 80,000 client visits per week.
It made losses of £1.5 million last year.
Complete Care booked a £2.6 million operating loss in 2016.
Last month Mitie issued its third profit warning since September in response to delayed contracts and a flagging performance from its cleaning division.
The firm said it expected full-year underlying operating profit to be in the lower range of £60 million to £70 million after pinpointing a further £14 million in one-off costs.