TeacherActive poised for growth after MBO

Rob Browett, managing director of TeacherActive

Education recruitment business TeacherActive has undergone a management buyout as part of plans to expand its nationwide branch network.

Rob Browett, who joined the Birmingham-based business as a branch manager 10 years ago before becoming managing director in 2015, has led the buyout which has been backed by Tosca Debt Capital (TDC) and Yorkshire Bank.

The value of the deal has not been disclosed, but TeacherActive achieved revenues of £36.2m in 2017, while published accounts for the two previous years showed pre-tax profits of more than 10% of turnover.

Browett said: “With more than 50 years’ combined recruitment experience the management team are looking forward to a really bright future for the company.

“The investment raised will allow us to go from strength to strength, broadening the share ownership, opening new offices and allowing us to deliver an exceptional service to both our teaching staff and our schools.”

TeacherActive operates 18 regional offices from Newcastle to Exeter and supplies teachers, education support staff and nursery nurses to more than 3,000 schools across England and Wales.

Manchester-headquartered TDC and Yorkshire Bank have taken equal minority stakes in the business.

Richard Williams, partner at TDC, added: “TeacherActive is a forward-thinking business that recognises the opportunities within this growth market, which is now worth £1bn+.

“We’re looking forward to working with the management team to identify new growth opportunities, respond strategically to evolving supply pressures and reach its full potential.”

Clearwater International’s debt advisory and M&A teams advised on the deal, led by partners Chris Smith and Rob Burden, and director Joe Dyke.

Senior debt and working capital facilities were provided by the Birmingham office of Clydesdale & Yorkshire Bank’s corporate and structured finance team in Birmingham, while DLA Piper advised TDC on the transaction.

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