Wilmington sells UK healthcare business to Inspirit Franklin Holdings for up to £26.3m

Wilmington plc (LSE: WIL), a key player in providing data, information, education, and training within the global Governance, Risk, and Compliance (GRC) markets, has successfully completed the sale of its UK Healthcare Business to Inspirit Franklin Holdings Ltd for up to £26.3 million. This sale is part of Wilmington’s strategic move to exit its European healthcare businesses, following the earlier disposal of its French healthcare business, APM, for €26 million on April 26, 2024. The combined total from these transactions reaches approximately £48.5 million.

The initial consideration for the UK Healthcare Business is set at approximately £21.3 million, which includes around £4.8 million in cash. The remainder will be satisfied through secured loan notes issued by the buyer. An additional consideration of up to £5.1 million is contingent upon the UK Healthcare Business achieving specific EBITDA targets for the fiscal year ending June 30, 2025. These additional funds will also be satisfied through the issuance of loan notes, which will have a four-year term and bear a variable interest rate tied to the Bank of England base rate.

The UK Healthcare Business, encompassing the entire issued share capitals of Wilmington Healthcare Limited and Interactive Medica SL, reported gross assets of £34.1 million and a pre-tax profit of £2.5 million for the year ended June 30, 2023. The proceeds from this disposal are earmarked for the general corporate purposes of Wilmington plc.

Mark Milner, Chief Executive Officer of Wilmington, highlighted the strategic importance of these divestitures: “The disposal of our UK Healthcare Business completes our divestment of our European healthcare businesses, at a combined multiple of 10 times FY23 EBITDA.” Milner expressed gratitude towards the teams at APM and UK Healthcare for their dedication and extended his best wishes for their future under new ownership.

Post-disposal, Wilmington plc is refocusing its business model to become a high-margin, pure-play platform concentrated on the GRC sector. This sector includes providing essential intelligence, data, and training to customers operating within regulated markets. Milner indicated that Wilmington continues to seek high-quality GRC assets that align with the company’s strategic characteristics, aiming to strengthen its position in this niche market.

This strategic divestment marks a significant reshaping of Wilmington’s business structure, moving away from healthcare to focus solely on its core competencies in the GRC sector. Such a move not only simplifies Wilmington’s operations but also allows it to concentrate resources on areas with higher growth potential and margins. This is a calculated step to enhance shareholder value by focusing on sectors where the company can leverage its strengths and market position.

Wilmington plc’s recent divestitures reflect a deliberate strategy to streamline its operations and focus on areas of strategic importance. By consolidating its resources and expertise in the GRC field, Wilmington is well-positioned to capitalize on the growing demand for governance, risk, and compliance solutions in regulated industries.