Interserve Plc has announced that it has entered into an agreement to sell its Infrastructure and Industrial access and hard services business to Enigma Industrial Services Holdings Ltd via Interserve Industrial Services Limited (IISL).

The agreement provides for a cash consideration of approximately GBP3.6 million (US$4.73 million) payable upon completion of the transaction, with the potential for a further cash consideration of GBP1 million (US$1.31 million) subject to the business achieving certain financing targets for the financial years 2018 and 2019.

This sale concludes Interserve’s exit from its industrial contracting activities. The business being sold comprised Interserve’s provision of scaffolding services to housebuilders and other contractors as well as its SIP (Scaffolding, Insulation & Painting) services to large industrial sites. Scott Hardie will continue to lead the business as Managing Director.

For the year ending 31 December 2017, IISL reported an operating loss of GBP4 million (US$5.26 million) and had gross assets of GBP47.3 million (US$62.03 million). The transaction will result in a loss on disposal of circa GBP8.4 million (US$11.04 million). The sale proceeds will be used to reduce the group’s indebtedness.