1st Jul 2016 07:02
LONDON (Alliance News) - Recruitment and outsourcing services provider Servoca PLC on Friday said it has bought Classic Education Ltd for an initial consideration of GBP1.2 million.
The acquisition will be funded from existing cash resources and debt facilities, and a deferred consideration of GBP1.9 million will be payable subject to Classic Education meeting certain profit targets for the two years following acquisition.
Classic Education specialises in recruitment services for the education industry and operates from a single office in Gravesend in Kent. Pretax profit in the year ended March 31 was just under GBP0.6 million.
Servoca expects the acquisition to be earnings enhancing in the year ending September 30, 2017, with minimal impact on the current year. It said Classic Education will be a bolt-on to its education recruitment business in a geographic area with high levels of demand but where Servoca does not currently hold a local presence.
"We are delighted that Classic Education is now part of Servoca. This acquisition complements our existing branch network in education and gives us a local presence in the Kent and South London market, an area with significant demand for education recruitment services," Chief Executive Andy Church said in a statement.
"The acquisition of a long-established local provider in this area increases our national branch network coverage. In total we now have 15 UK locations and one overseas office from which we service local schools. We look forward to working with the staff and management that have helped build the business into one of the leading providers in the area," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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