Morson acquires competitor from administrators
TECHNICAL recruitment specialist Morson Group has bought one of its rivals out of administration in a £7.75m deal.
The AIM-listed Salford-based company, which supplies skilled workers to the aerospace, defence and other industries, has acquired Surrey-based Wynnwith and its small Italian subsidiary.
Morson said the business, which was established in 1973, has annual sales of around £70m but has been loss-making for some time.
It has completed the deal through a joint venture, Morson Wynnwith, which has been set up with Wynnwith’s shareholders. Morson holds a controlling 51% stake.
The assets include £9m of debtors and £300,000 of other assets. Morson said it has paid for the acquisition through a cash loan to Morson Wynnwith.
Morson’s chief executive, Ged Mason, said: “Wynnwith is a longstanding, significant business operating in our core market. The current recessionary environment has been challenging for several of our competitors who, unlike Morson, cannot restructure operations to maintain operating margins or lack balance sheet strength.
“Under Morson ownership, Wynnwith’s client base and suite of enhanced recruitment and technical services will integrate into the systems, procedures and service offerings of the wider Morson Group which we are confident will deliver business opportunity and increased market share. We look forward to updating the market on this joint venture over the coming months.”
In March Morson said profits had slipped 8% to £10.8m in the 12 months to December. on revenues of £436.6m, up 1.2%.
