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.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here