Pest control firm Rentokil Initial has offloaded its troubled City Link parcel delivery division to Jon Moulton’s private equity firm Better Capital.
Better Capital, which also owns double-glazing firm Everest and fashion retailer Jaeger, is to plough £40 million into City Link in a bid to turn the business around following five years of losses.
Rentokil said the delivery company narrowed its operating losses from £31m to £26m in 2012, and trading has continued to improve during the first three months of this year.
Chief executive Alan 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.
“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.”