Recruitment group NES sold for £234m
RECRUITMENT group NES Global Talent has been sold by its private equity owner Graphite Capital for £234m to US private investment group AEA Investors.
Altrincham-based NES, which specialises in technical and industrial recruitment, has grown fast since Graphite backed a management buyout (MBO) in September 2006 with an enterprise value of £70m.
NES places highly skilled contract engineers and project managers with blue chip, multi-national clients, principally in the oil and gas industries, and also in the power and infrastructure sectors. In the year to the end of October turnover surged by more than 30% to £380m and ebita came in at £16.8m.
NES has grown earnings before interest, tax, depreciation and amortisation (EBITDA) organically every year since the MBO despite the difficult economic climate. Net fee income has more than doubled and earnings trebled under Graphite’s ownership.
Its growth has been achieved through rapid international expansion. Three quarters of its profits are now generated overseas, across all continents. The EBITDA contribution from these international regions has increased six-fold since 2006.
NES has rolled out 20 new offices since the 2006 buyout, taking the total around the world to 32. Staff numbers have more than doubled to around 450 and the company has more than trebled the number of contractors on its books to nearly 5,000 in 62 countries.
NES chief executive Neil Tregarthen, said: “Graphite has supported our ambitious growth strategy over the past six years. From the outset they shared our vision for NES’ global expansion which has transformed our business and driven our growth.
“We are very excited about partnering with AEA. We believe that their deep network in the oil and gas industry coupled with their international profile and resources will be great assets as we look to accelerate the global expansion of NES over the coming years.”
Graphite senior partner, Mike Tilbury, added: “NES is a high quality business run by a very strong management team. Its financial track record in recent years has been exceptional.
“NES has grown strongly despite unprecedented macro-economic turmoil and is well positioned to continue to take advantage of the substantial global growth opportunities in its target markets.”
The transaction was led for Graphite by Mr Tilbury, partner Jenny Michelman, senior partner Simon ffitch and partner Mudassir Khan.
NES’ new owner AEA Investors LP was founded in 1968 by some of the US’ biggest and most influential families – the Rockefeller, Mellon, and Harriman family interests and banking giant SG Warburg & Co as a private investment vehicle for a select group of industrial family offices with substantial assets.
The firm manages funds that have over $6bn of invested and committed capital including the leveraged buyouts of middle market companies and small businesses and mezzanine and senior debt investing. AEA Private Equity invests across four sectors: value added industrial products, specialty chemicals, consumer products/retail and services.
Former BP chief executive Tony Hayward has been an adviser to AEA since leaving the oil company in 2010 the aftermath of the Gulf of Mexico oil leak.
Advisers included Richard Harding from Ernst & Young in Manchester on the sell side. Other Graphite advisers were law firm Olswang and corporate finance house Robert W Baird.
