Capita to take over Fera food and environment agency

11th Feb 2015 13:40

Capita has secured an 10-year deal to partner the UK government in operating the Food and Environment Research Agency (Fera) as part of an effort to drive national growth in the UK's agri-food industry.Capita will spend £20m in cash to acquire a 75% stake in the joint venture, which currently generates annual turnover of around £40m, and take over the operation of Fera from 1 April.The FTSE 100 company has also been selected to provide a 10-year supplier framework through which scientific services can be bought directly by other state bodies.Capita said the joint venture was expected to achieve at least £700m revenue over the next 10 years, with growth forecast from existing agreements with the public sector, predicted new public sector work and the development of new commerical services."The excellent science being carried out by staff at Fera has not yet been able to reach its full commercial potential because of obvious limits on investment, recruitment and marketing," said Capita chief executive, Andy Parker."Capita's commercial know-how will complement the Fera team's scientificexpertise, helping it to grow the scientific capability it can offer existingand new customers."The Department for Environment, Food & Rural Affairs (DEFRA) is investing £14.5m into the joint venture in order to establish a joint academic institute with Newcastle University, creating 50 new scientific roles.Defra wants to expand the agency's scientific capability and strengthen its role in food safety research.Environment Secretary Elizabeth Truss said: "This exciting investment allows Fera to grow its science capability, ensuring the security and quality of our food supply chain and keeping our plants and environment healthy."Fera's continued ability to deliver cutting edge science will enhance its reputation and viability as an international centre of excellence that can compete abroad and attract further investment."