Staffline has announced it has acquired Peter Rowley Limited a training provider with its principal and namesake set to work with Staffline for a minimum period of two years.
The acquisition is in line with Staffline’s strategy of making selective acquisitions to broaden its revenue streams, thereby positioning it more as a provider of value added business services in the human resource arena.
Peter Rowley has 36 employees and, in the year ended July 31, 2009 it achieved revenues in excess of £2 million per annum and a pre-tax profit of £500,000, with a net asset value of £0.8m.
The consideration comprises an initial cash payment of £1m, payable from Staffline’s existing bank facilities, deferred cash consideration of £500,000, payable in January 2011, and two further cash payments payable up to an aggregate maximum of £1m based on 50 per cent of the profits achieved in excess of £500,000 during the two financial years following the acquisition.
Andy Hogarth, Staffline’s chairman and chief executive, said: “We are delighted to welcome Peter Rowley and his company to the group, bringing a highly complementary offering to our existing operations. Together our two organisations will provide a platform for further growth in our core operating areas.
“We continue to look for similar acquisition opportunities, in addition to other smaller industrial recruitment businesses in order to enhance shareholder value.”
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