The UK delivery and courier service report a £26m loss in 2012, an improvement on its 2011 losses of £31m The company has gross assets of £77.6m.
Alan Brown, chief executive of Rentokil Initial, 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.
“Rentokil Initial has decided to divest of City Link at this stage of the turnaround so that we can concentrate on our core international businesses in Pest, Hygiene and Workwear. The sale positions Rentokil Initial as a stronger and more focused group.”
The current City Link management team, led by David Smith, will continue to run the business. Better Capital said it will invest £40m via its BECAP12 Fund in the business to provide more than sufficient funding required by City Link to complete its turn-around plan.
Earlier this year Better Capital agreed a joint distressed investment venture with the National Pensions Reserve Fund of Ireland (NPRF), Ireland’s €14bn social welfare and public service pension fund, to target distressed business in Ireland.
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