United Utilities (UU) has sold Vertex, its business process outsourcing unit to a private equity consortium spearheaded by US-based Oak Hill Capital in a deal worth £217.5m.
Speculation increased that the FTSE 100 corporate was considering offloading Vertex when it emerged that it had hired investment bank Merrill Lynch as a financial adviser following several bid offers for the unit. UU, which employs 17,000 people, confirmed that it was selling off the unit in December.
The company said: 'United Utilities announced at its 2006/07 interim results, on 5 December 2006, that the board had taken the strategic decision to initiate a process for the divestment of Vertex. It believes that the interests of United Utilities’ shareholders are best served by concentrating on the group’s core skills of managing water, wastewater, electricity and gas networks. This transaction is consistent with that strategy.'
The winning bidders signed a definitive agreement to acquire Vertex for a maximum consideration of £217.5m deal 'comprising cash, the repayment of intra-group debt and the assumption of certain Vertex liabilities,' the company reported. Subject to regulatory requirements, the deal is expected to be wrapped up by the end of March.
Further reading:
Outsourcing: out of sight, out of mind
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