Better Capital's City Link divests assets to DX

The sale of assets, which includes cages, scanners and some intellectual property, is the first divestment since EY was appointed administrator of the troubled business in December.

The UK-based delivery company went into administration over the Christmas period, with owners Better Capital coming under scrutiny from UK national media for the timing of the announcement.

EY stated it will make further announcements about the sale of City Link assets in the coming weeks, while it winds down the business’s operations. Responding to the company’s demise into administration, Better Capital said it anticipated recouping £20m based on an estimated liquidation valuation.

DX stated it intends to provide job opportunities for former City Link employees following the deal. EY has previously announced 2,356 permanent workers have been made redundant, with media reports stating a further 1,000 contractors have also lost their jobs.

Better Capital acquired City Link from Rentokil in a turnaround deal in April 2013, with capital drawn from the £355.6m BECAP 12 Fund. The GP invested £40m in the delivery service in order to finance the deal and fund the business's restructuring.

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• Exits
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• Better Capital LLP