27th Apr 2015 06:49
LONDON (Alliance News) - Staffline Group PLC on Monday said it has struck a deal to acquire A4e Ltd, a welfare-to-work and skills training services provider in the UK, for a total of GBP34.5 million.
Staffline said it will pay GBP23.5 million in cash for A4e and will assume the company's GBP11 million debt obligations. The cash consideration will be funded through increased debt facilities provided by Staffline's existing lenders, the company said. Its lending facilities will now comprise a GBP35 million term loan, GBP20 million in loan notes, and increased working capital facilities of GBP30 million.
A4e is expected to deliver a pretax profit GBP10.2 million for the year to the end of March on revenue of GBP140 million, Staffline said. It said the deal will mean it has the biggest presence of all work programme providers in the UK and will boost Staffline's exposure to the employability, justice and skills sectors.
Staffline added it has seen a strong start to 2015 and said its new business pipeline remains robust.
"We are delighted to be announcing today the acquisition of A4e. This is an exciting milestone in Staffline's growth, considerably expanding the size and geographic reach of our Employability offering and will result in the combined business being one of the largest Work Programme providers in the UK," said Staffline Chief Executive Andy Hogarth.
By Sam Unsted; [email protected]; @SamUAtAlliance
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