Capita acquires property consultancy GL Hearn
Capita today announces that it has acquired GL Hearn, a market-leading UK property consultacy business, for a cash consideration of £25m on a cash free, debt free basis, plus a deferred consideration of £5m.
GL Hearn provides commercially driven advice to land owners, developers, house builders, investors, retailers and the public sector. Its client list includes some of the UK's largest retailers and developers, as well as a number of other blue chip companies.
GL Hearn reported an operating profit of £5.8m on turnover of £31.2m in its last financial year up to 31 May 2015. Capita expects to grow the business and achieve a return on capital in excess of 15%.
The company is a market leader in planning, development and regeneration. It employs over 250 staff, and has its head office in London. GL Hearn has a strong record of delivery in London, as well as across the rest of the UK - which it serves from seven regional offices, including Glasgow, Manchester and Southampton.
Andy Parker, Capita's Chief Executive, said: " GL Hearn will be a transformative addition to Capita's property and infrastructure business. Beyond extending and enhancing our existing real estate offer, GL Hearn's track record and range of expertise will allow us to provide market-leading commercial, technical and strategic advice across the entire development process."
He added: "For the wider Group, the acquisition of GL Hearn will allow us to develop and offer new and extended propositions to all the sectors and clients we work with. We see a particular opportunity to work with a number of our clients to add value through the commercialisation of their existing asset bases."
Brian Sloggett, managing director of GL Hearn, said: "Following its acquisition by Capita, and over 90 years since it was first founded, GL Hearn has entered into an exciting new phase. It will join forces with Capita's real estate business to generate a new and unique powerhouse in the UK property market. Being part of Capita will enable us to accelerate the growth potential of the GL Hearn business and build an even stronger platform for ours and Capita's public and private sector clients.
"We are confident that our combined clients and team will derive considerable value and opportunity from this acquisition."