Interserve has entered into an agreement to sell its industrial scaffolding and hard services business for £3.6m to Enigma Industrial Services Holdings Ltd.
The division being sold provides scaffolding services to housebuilders and other contractors as well as its SIP (Scaffolding, Insulation & Painting) services to large industrial sites.
Interserve says the £3.6 million purchase price is payable upon completion with the potential for a further cash injection of £1 million subject to the Business achieving certain financing targets for the financial years 2018 and 2019. The money from the sale will be used to reduce Interserve’s debt.
For the year ended 31st December 2017, Interserve Industrial Services Limited (IISL) reported an operating loss of £4m and had gross assets of £47.3m. The transaction will result in a loss on disposal of £8.4m for Interserve.
Together with the closure of IISL power activities earlier this year, this sale concludes Interserve’s exit from its industrial contracting activities.
Managing Director Scott Hardie holds on to his position and will continue to lead the business.
Debbie White, Chief Executive Officer at Interserve said:
“We are pleased to announce the sale of the access and hard services business as part of Interserve’s strategy to focus on core customer segments.”