Outsourcing firm Mitie has sold its healthcare arm for just £2 after it issued three profit warnings in the last 12 months.
Private equity firm Apposite Capital is the buyer and will also receive nearly £10 million from Mitie because of the business’s trading losses.
On top of this, it will also write off £36.8 million in costs, according to a BBC report.
Last November Mitie reported a £100 million loss which prompted it to say it was withdrawing from the home healthcare market.
Firms in the home healthcare market are struggling across the board as a combination of rising staff costs and local council spending cuts pile pressure onto margins.
The news follows a similar move by Mears, another outsourcer which recently exited the healthcare market.