Service support firm Serco has confirmed it is at an early stage in discussions over the sale of its environmental services division.
According to a Sky News report, Serco is in talks with private equity investors Rutland Partners over the sale, with one source claiming the deal will be worth around £75m.
Serco declined to comment on the report, but said a number of its businesses had been identified as “non-core” to the future of the group.
A company spokesperson said: “This includes our UK Environmental Services business, which we will look to potentially sell if and when an appropriate transaction can be developed.
“Discussions are at an early stage. Any deal will take a number of months and would be subject to commercial negotiations and agreement by all of our customers.”
On 10 November Serco chief executive Rupert Soames announced the company would focus on providing services to governments in five core sectors and that environmental services did not fit with the company’s future strategy.
Serco said staff will be transferred to whichever organisation buys the environmental services business, subject to a consultation process.
Serco has waste and recycling contracts with more than 17 UK councils including Havering, Bexley, Canterbury and Breckland.
According to the company, the environmental services division has a £1.5bn order book.