Recruitment firm in pre-pack deal with £70m group

A £70m turnover recruitment group has bought a distressed Warrington-based recruitment firm in a pre-pack deal, saving 21 jobs.

Midlands-headquartered First Holdings (UK) Limited has acquired £14m turnover Foresight Recruitment Solutions, which has offices in Warrington and Rotherham, for an undisclosed sum.

Its temporary and permanent staff and suppliers have been fully paid, while all Foresight staff have retained their positions in terms of service and supply, according to Walsall-headquartered First Holdings.

Sales and service director Stephanie Cooper remains a member of Foresight’s senior management team and retains shares in the business, while former managing director Dylan Cooper has left the company to pursue other business interests.

Established in 2002, Foresight was acquired by Stephanie and Dylan Cooper in a management buyout from its previous owners in 2008.

The company enjoyed significant growth across the North West and Yorkshire within its five core sectors of automotive, commercial, food production, industrial & driving and IT & digital.

At the start of this year the directors put the business up for sale. First Holdings told TheBusinessDesk that it first met with them in mid-May and formally expressed its interest in the business, confirming its intention to purchase two weeks later.

Its advisers assessed the business as solvent on the basis of the information presented and First Holdings said at that point the acquisition was proceeding on the basis of a sale from Foresight’s shareholder-directors to First Holdings (UK) Limited.

In the meantime, Foresight experienced trading challenges and a winding up petition was presented against the firm on June 8.

At a meeting on June 28 between the two firms, First Holdings was updated on the latest management accounts and subsequently agreed to continue with the acquisition.

“However, as a result of the outstanding petition, it was indicated that the acquisition would have to progress through the proposed administrators, Leonard Curtis,” a First Holdings spokesperson explained to TheBusinessDesk.

First Holdings (UK) Limited acquired assets, including goodwill, of Foresight from joint administrators Kevin Murphy and Andrew Poxon of Leonard Curtis after it had been appointed as administrators on July 18.

First Holdings subsidiary Midlands Personnel Limited formally changed its name to Foresight Recruitment Solutions on July 20.

Foresight Recruitment Solutions will continue to trade independently but now be part of the larger group.

Matthew Reddy, chief executive of First Holdings, told TheBusinessDesk: “This is an exciting acquisition for us all. Foresight’s business culture and vision fits extremely well with our group, which will enable us to grow each business with our exceptional service delivery standards and create cross selling opportunities for each other.

“From the moment we met Foresight’s directors, we knew our companies would represent a good fit. We believe our group will provide Foresight with the financial and managerial strength it needs to continue with its impressive growth and levels of customer service.

“I am delighted that, as a result of our acquisition, we have been able to ensure all the staff and temporary workers are being paid on time and that Foresight can continue to facilitate the employment of hundreds of people in the North West and Yorkshire.”