Capital Outsourcing Group recruits Yorkshire firm in £7m deal

BIRMINGHAM recruitment firm Capital Outsourcing Group has taken over Yorkshire’s Qualtech Resourcing in a £7m deal.

Dewsbury-based Qualtech, which was founded in 2004, will take its 31 clients over to Capital Outsourcing.

Qualtech’s co-owner Chris Worthington will continue as a director although the other founding director and finance director Paul Thirlwell has left the board.

Capital describes itself as “one of the UK’s fastest growing temporary recruitment firms”. Qualtech specialises in engineering, technical, manufacturing, construction and commercial recruitment, with a strong footprint in the North of England.

It is projected that the expansion – following the acquisition – will provide an impressive turnover increase for the company from £25m to £35m.

Richard Sobol, owner of Capital Outsourcing Group, said: “Qualtech Resourcing Limited very much mirror what we do here at Capital – they were an ideal fit for us as we look to expand and we are confident they will make a great addition to our business.

“This acquisition will enable us to firmly establish our Northern offering and provide seamless entry into new markets, which have the potential to provide future growth opportunities.”

The acquisition was supported by a £2.4m funding package from HSBC.
 
Markus Keller, area director for corporate banking in Birmingham, said: “Capital Outsourcing Group is a dynamic business, keen to build upon its strong foundations in the Midlands.

“The funding provided by HSBC has helped Capitol’s expansion into the North region, putting them a step closer to achieving its goal to become one of the leading suppliers of temporary and contract staff in the UK within the next five years.”

Birmingham-based accountancy practice Michael Dufty Partnership (MDP), provided the lead advisory role for the acquisition and assisted in preparing the funding package for presentation to HSBC.

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