Rentokil Initial has sold City Link to turnaround investment firm Better Capital.

City Link MD Dave Smith will continue to lead the company through its transformation programme, under the deal, which will see Better Capital invest in the parcel carrier.

The change of ownership, which is effective as of today (29 April), will secure £40m in future funding for City Link.

MD Dave Smith said: “This is great news for our customers and our colleagues. We will all benefit from the expertise of Better in business turnaround and from the certainty of funding the deal provides.”

Smith assured customers that it will be “business as usual” in the short term.

Alan Brown, chief executive at former parent Rentokil Initial said he believes City Link has “turned the corner after five years of substantial losses”.