Gattaca PLC Acquisition of Resourcing Solutions Limited (7885V)
February 02 2017 - 1:00AM
UK Regulatory
TIDMGATC
RNS Number : 7885V
Gattaca PLC
02 February 2017
2 February 2017
Gattaca plc
Acquisition of Resourcing Solutions Limited
Gattaca plc ("Gattaca" or the "Company" or the "Group"), the
specialist Engineering and Technology recruitment agency, is
pleased to announce that it has acquired a majority stake in
Resourcing Solutions Limited ("RSL"), a niche engineering
recruitment business (the "Acquisition").
RSL, which was founded in 1996, operates from three UK offices
in Reading, Uxbridge and Derby, providing specialist contract and
permanent candidates to companies operating in the Rail, Power and
Built Environment sectors.
RSL is expected to generate NFI of GBP7.5m and underlying EBITA
of GBP2.0m in the 12 months to 31 January 2017. Over the same
period approximately 88% of RSL's Net Fee Income ("NFI") was
generated from contract placements, with the balance from permanent
recruitment fees.
The Acquisition is expected to be immediately earnings enhancing
for Gattaca.
Under the terms of the Acquisition, Gattaca's wholly-owned
subsidiary, Matchtech Group (Holdings) Limited will initially
acquire 70% of RSL's issued share capital for GBP6.9m from founder
and CEO Richard Lawrance and Alysoun Stewart, an investor in RSL,
with the remaining 30% subject to a put and call options
exercisable from 12 months post-completion for 5.0x trailing EBITA
at that time. The maximum total consideration payable is GBP15.0m.
All consideration is payable in cash and will be funded from the
Group's existing resources. The Group will take on RSL's existing
working capital finance facilities, expected to be approximately
GBP4.0m at 31 January 2017.
Richard Lawrance will continue as CEO of RSL following the
Acquisition. The existing management of RSL will also remain in
place.
Commenting, Gattaca Chief Executive Brian Wilkinson, said:
"The acquisition of Resourcing Solutions Limited is a further
step forward in the growth strategy for the Group. We are excited
by the opportunities it creates to significantly broaden our
capability in the UK's Rail, Power and Built Environment markets
where we are seeing continued investment.
"Following our acquisition of Networkers in April 2015 we have
identified Rail-related opportunities in many of our international
locations. The addition of RSL's capabilities, knowledge and
experience in the sector will enable us to secure more of these
opportunities.
"RSL has grown over the last few years under Richard Lawrance's
leadership and we believe, with the support of the larger Group,
the business will continue to flourish. I am pleased to welcome
Richard and his team on board."
RSL Chief Executive, Richard Lawrance, said:
"As a long term admirer of Gattaca's business, when we were
seeking a strategic partner to help accelerate the growth of RSL,
Gattaca was our preferred choice. I am delighted that RSL is now
part of Gattaca and see great opportunities for all our staff to
conduct more business with the backing and support of a larger
Group. I look forward to working with them to develop the business
further."
For further information please contact:
Gattaca plc +44 (0) 1489 898989
Brian Wilkinson, Chief
Executive Officer
Tony Dyer, Chief Financial
Officer
Citigate Dewe Rogerson +44 (0) 20 7638 9571
Rob Newman / Nick Hayns
Numis Securities Limited +44 (0) 20 7260 1000
Michael Meade / Kevin Cruickshank
/ Tom Ballard
This information is provided by RNS
The company news service from the London Stock Exchange
END
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