Acquisition of non-controlling interest

RNS Number : 4294E

Empresaria Group PLC

04 July 2019

 

4 July 2019

Empresaria Group plc ("Empresaria" or the "Group")

Acquisition of non-controlling interest and related party transaction

Empresaria, the international specialist staffing group, is pleased to announce the cash acquisition of a further 17.5% interest in a subsidiary, ConSol Partners (Holdings) Limited ("ConSol"), taking its total investment to 82.5%.  Empresaria has a long-term policy of purchasing non-controlling interests where it sees real value for shareholders and each acquisition is assessed on performance.  

The shares have been acquired from management shareholders, including Graeme Hubert and Marc Cohen who are directors of ConSol, for total consideration of £3.5m on terms in line with the original acquisition in 2016. The funds will be provided from the Group's existing bank facilities.

ConSol is a specialist recruitment business in the IT sector with a focus on niche sectors across communications, cloud and digital.  With offices in London, Los Angeles and, from April 2019, Austin, Texas, they work with clients across the world and have placed clients in more than 55 countries.

ConSol has performed well since joining the Group and delivered on our expectations. This investment reflects the Group's commitment to its core sectors where it sees high growth potential.

Related party transaction

The acquisition of non-controlling interests from Graeme Hubert and Marc Cohen, directors of ConSol, are considered related-party transactions for the purposes of Rule 13 of the AIM Rules for Companies. The directors consider, having consulted with Arden Partners, the Company's nominated adviser, that the terms of the non-controlling interest acquisition are fair and reasonable in so far as Empresaria's shareholders are concerned.

ConSol contributed £2.3m to the adjusted profit before tax of Empresaria in 2018 and the acquisition is expected to be earnings accretive in the current year.

Rhona Driggs, Chief Executive Officer of Empresaria, commented:

"ConSol has performed strongly since joining the Group in 2016.  Operating in one of our core sectors, we see great potential for this business and as such we have continued to invest in the business post acquisition; launching a sub-brand, 4ward Talent, opening a new office in Austin, Texas and now acquiring an increased stake in the business in line with our long-term policy."

Enquiries:

Empresaria Group plc Rhona Driggs, Chief Executive Officer Tim Anderson, Chief Financial Officer	via Alma
Arden Partners (Nominated Adviser and Broker) John Llewellyn-Lloyd / Ciaran Walsh	020 7614 5900
Alma PR (Financial PR) Rebecca Sanders-Hewett Sam Modlin Hilary Buchanan	020 3405 0205 [e-mail]

Notes for editors:

·    Empresaria Group plc is an international specialist staffing group with 20 brands operating in 21 countries across the globe including the UK, Germany, Japan, India, UAE, Indonesia, Chile, Australia, Thailand, Singapore, Finland, USA, New Zealand, China, Malaysia, Vietnam, the Philippines and Peru.

·    Empresaria offers temporary/contract and permanent staffing solutions as well as Offshore Recruitment Services in seven key sectors: Technical & Industrial, Aviation services, IT & Design, Professional services, Healthcare, Executive search and Retail.

·    Empresaria applies a multi brand, management equity philosophy and business model, with group company management teams holding significant equity in their own business.

·    Empresaria is listed on AIM under ticker EMR. For more information: empresaria.com

 

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