Member Article

Rentokil sell parcel business for £1

Rentokil has sold its parcels arm, City Link Limited for £1 to private equity investor Better Capital.

Chief executive, Alan Brown, said the sale was necessary for Rentokil to be able to concentrate on core international businesses in Pest, Hygiene and Workwear.

The current City Link management team will continue to run the business as Better Capital will invest £40m.

Rentokil has retained certain parent company guarantees, including roughly £20m of leasehold properties.

Mr Brown said: “I believe City Link has now turned the corner after five years of substantial losses. The business has made strong financial progress over the last two quarters, it now has a strong management team and we have found a very committed investor in Better Capital.”

This was posted in Bdaily's Members' News section by Tom Keighley .