June 19, 2018 / 6:36 AM / 6 months ago

Capita to sell supplier assessment services business for 160 mln pounds

June 19 (Reuters) - British outsourcer Capita plc said on Tuesday it agreed to sell its supplier assessment services business, including Constructionline, to funds affiliated with Warburg Pincus for 160 million pounds ($212 million) in cash.

Capita, which provides IT-led services for the public and private sector, expects to use proceeds to lower debt.

The company has been trying to cut debt and boost investments after taking on projects that were not profitable.

Capita said in April it had identified 300 million pounds of asset sales for this year, and more in the next two years, before it returns to revenue growth from 2020.

The supplier assessment services is focussed on supplier risk management, health and safety and professional services. That business bought Constructionline, which provides procurement and supply chain management services, in 2015.

Supplier assessment services had underlying revenue of 14 million pounds and operating profit of 6 million pounds in 2017.

Goldman Sachs International acted as sole financial adviser on the deal, which is expected to close by early July.

$1 = 0.7547 pounds Reporting by Arathy S Nair in Bengaluru; Editing by Bernard Orr

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