Pertemps and Network Group transaction is Deal of the Month
PERHAPS unsurprisingly, the headline grabbing reintegration of two well-known recruitment groups has won TheBusinessDesk.com’s Deal of the Month for February 2012.
A whole host of Midlands advisers worked on the deal which saw Pertemps and AIM-listed Network Group reintegrated following the announcement of a planned management buy-out of both businesses by a joint management team.
The MBO brings Pertemps and Network back together after Network originally split from Pertemps in 2004 to form a separate listed business comprising 24 operating subsidiaries.
The re-combined business, which is being rebranded Pertemps Network Group with immediate effect, will be the UK’s largest independent provider of specialist outsourced recruitment services and temporary employment solutions, with a combined turnover in excess of £425m.
The transaction was backed by LDC out of Birmingham.
The MBO, delivered through management vehicle NGH Topco Ltd, was completed with support from a number of Midlands-based advisers including Eversheds, which acted as legal adviser to LDC and Gateley, which advised PNG’s management team and Network. Mazars provided financial due diligence. The board was advised by Pinsent Masons. Arden Partners acted for Network.
The MBO forms part of an agreed succession plan which will allow the founders of Pertemps and Network to progressively step back from the day-to-day running of the business with the existing and long-established senior management team, all of whom have more than 20 years of experience in the business, assuming greater responsibility.
The transaction is also a continuation of the transfer of ownership of the business from Tim Watts to PNG’s employees, who will hold around 40% of the group’s equity going forward.
LDC’s investment in the deal is thought to stretch into eight figures but the full amount has not been disclosed. Nevertheless, the firm said the investment was “significant”.
LDC was led by investment directors Steve Aston, Alistair Pendleton and Chris Hurley. Aston and UK portfolio managing director Hurley will join the PNG board with immediate effect.
TheBusinessDesk.com editor Andy Coyne said: “Choosing the Deal of the Month winner for February was a no-brainer. Although it happened at the beginning of the month this was a stand-out transaction and deserves the accolade.
“It was a complicated deal but the result should be that the new group will be able to operate more effectively and support future growth.
“And it was great to see so many local advisers involved in the deal and local funders backing it.”
