MBO safeguards 400 jobs and could create 250 more over three years

NCO Europe Limited in Preston has undergone a successful management buyout from its US owners, safeguarding hundreds of jobs in the area with the view of creating an additional 250 over the next three years.

The business process outsourcer and customer arrears management solutions specialist received, undisclosed, support from the Barclays Northern Powerhouse Fund, which recently assisted in the MBO of the business from US owners Alorica Inc.

NCO is a multi-lingual business process outsource and specialist call centre business which has grown over the past 25 years to become one of the largest employers in Preston.

Based at New City House, NCO Europe employs more than 400 people with a turnover in excess of £11m per annum.

The £500m Northern Powerhouse Growth Fund was established to inject investment into businesses across the North of England and is intended for SMEs across the Northern Powerhouse region, including established businesses with ambitious growth plans, start-ups with high growth potential, companies with early-stage equity funding, and businesses focusing on innovation, R&D and technology.

Nick Ford, NCO Europe Limited chief executive, said: “Barclays played an integral role in supporting the acquisition process and funding the deal.

“I would like to thank them for their patience, flexibility and enthusiastic support to get this transaction over the line.

“They have been able to structure a funding package that suits our long term needs following the management buyout allowing us to make key strategic investments in a number of areas supporting our growth plans and digital transformation.

“We look forward to continuing the long-standing partnership we have established over the years with Barclays.”

Ed Spencer, relationship director who led the deal for Barclays Corporate Banking, added: “At Barclays we’re delighted to be able to help businesses grow and expand and the Northern Powerhouse fund is the perfect vehicle for businesses that are looking for new opportunities and require flexible funding options.

“This deal will mean that hundreds of jobs are retained here in the UK in Preston now that the business is under independent UK ownership, rather than migrating abroad, and with the plans currently in place will see a further increase over the coming years given the high regard NCO Europe is held within this market.”