Constructionline is one of the UK’s largest procurement and supply chain management services and was set up by BIS initially for public sector contracts. It aims to reduce the annual cost (currently £165 million) for construction industry buyers and suppliers, particularly SMEs, by providing a list of verified suppliers, saving time and money.
Capita, the UK’s largest provider of business process management and professional services solutions, with 64,000 staff across the UK, Europe, South Africa and India, successfully bid to acquire the assets of Constructionline for £35 million on a cash free, debt free basis.
Capita was awarded the original concession to run Constructionline, by the Government, in 1998 and was successful in the subsequent re-tenders. Following a competitive sale process, involving several phases of bidder pre-qualification, evaluation and final selection, the deal went through without a problem.
Mills & Reeve worked with BIS on the deal to secure the future of Constructionline, ensuring that customers will still be able to get access to a comprehensive and quality assured service, while achieving the highest price possible for the business.
Brian Marshall, corporate partner, and Vanessa Walton, corporate associate led the deal team at Mills & Reeve. Brian said: “We were delighted to assist BIS in securing the best deal possible in the sale of Constructionline. The agreement will mean that customers will still be able to access the same high level of service, while Capita will be able to expand the service and help it reach its full potential. At Mills & Reeve we’re committed to helping the private and public sectors work together and this deal shows how beneficial these arrangements can be.”
Brian and Vanessa were supported by IT partner Kevin Calder, national head of procurement law Ruth Smith, and employment associate Andrew Secker.
Capita was advised by DWF LLP.
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