Recruitment firm seals £1.5m deal for specialist business
Specialist recruitment firm Hercules Site Services has announced a £1.2m deal to buy 60 per cent stake in a white collar recruitment firm.
Hercules, which is based in Gloucestershire, is a technology driven labour supply company for the UK infrastructure sector.
The firm has acquired a stake in Future Build Recruitment which is based in Brighton.
The transaction is the first acquisition in Hercules’ history and it will see Future Build integrated into Hercules’ labour supply division.
It will give the company a presence in the white-collar recruitment market.
The white-collar and permanent recruitment market within the construction industry includes around 2.1 million workers or six per cent of the total UK workforce.
Future Build will also provide Hercules with an established presence in the South East , a region with good growth prospects for the infrastructure and construction sectors.
Future Build focusses on permanent recruitment for main contractors, house building, high-end residential, social housing and specialist sub-contractor sectors.
It currently has 14 employees, with plans to expand the workforce to 16 in January 2024.
Hercules’ management team expects synergies of the acquisition to include cross-selling across white and blue-collar recruitment, the sharing of digital recruitment tools and a stronger focus on permanent placement recruitment.
In the year ending 31 December 2022, Future Build generated revenues of £1.5m and produced profits before tax of £490,258.
Brusk Korkmaz, chief executive of Hercules, said: “The acquisition of Future Build represents a major milestone for Hercules as we continue to deliver on our strategy.
“When we floated on AIM in February 2022, we stated our intentions to grow organically and through acquisitions which broaden our capabilities, accelerate growth and enhance our core offerings. Having tested the market opportunity in white-collar recruitment through organic growth initiatives, this deal expands our footprint in the white-collar recruitment market by bringing a highly regarded business and team into the Company.
“I believe that Future Build will prove to be an excellent addition to the Company and that this move will be beneficial to both Hercules’ and Future Build’s clients who will now be able to fulfil both white-collar and blue-collar recruitment opportunities through the same provider. It also means that the Future Build team will benefit from more exposure to the infrastructure market, which is expected to grow substantially over the next 15 years. I look forward to welcoming the management team and all Future Build employees to Hercules.”
Simon Yates and Richard Smith, Future Build Directors, added: “We are delighted to be joining this ambitious company as it delivers its long-term growth strategy. By joining our two extensive client portfolios we will be able to provide both white-collar and blue-collar recruitment services, creating a significant platform for growth, exciting opportunities for our internal team and adding value to our combined customers and shareholders.
“We would like to thank all of our colleagues for their support throughout this process, and we look forward to working alongside Brusk and his team.”