Serco sells ‘non-core’ occupational health business

Serco Group plc has sold its occupational health business for £3.5m in a management buyout. Serco occupational health provides services such as absence management, health screening and health education programmes to over 450,000 clients in the UK. The business generated £15m revenue and £1m adjusted operating profit in 2012 but Serco said future growth would have been restricted under its continued ownership due to lack of synergies’ with its core health business. Serco had entered the occupational health market in 2008 with the acquisition of Grosvenor Health Ltd, with an annual revenue at the time of £11m. Grosvenor’s business and assets were subsequently transferred to another Serco company, Serco Limited, where occupational health became a small component of a large and diversified business support company.