Birmingham-based Pertemps operates in sectors including industrial, engineering, logistics and commercial markets, whilst AIM-listed Network specialises in the IT, legal, financial and healthcare markets.
The transaction, which is for an undisclosed amount, is said by LDC to consolidate Pertemps and West Midlands-headquartered Network into a ‘unified business’, Pertemps Network Group, which will have a reported combined turnover of £425 million.
The management buy-out (MBO) sees the founders of Pertemps and Network take a step back from the day to day running of the companies. The two businesses, historically once combined, separated in 1974 to form separate entities.
Tim Watts, founder of both Pertemps and Network, comments, ‘Together with our partner, LDC, we are confident that the new enlarged business will be able to take advantage of the many opportunities that will present themselves in the recruitment industry in the coming years.
‘The new enhanced group will be able to offer recruitment services to most areas and specialisms in today’s recruitment industry.’
As part of the MBO, there will be a continuation of the transfer of ownership of the business from Watts to PNG’s employees who will hold around 40 per cent of the group’s equity going forward.
Martin Draper, LDC UK new business managing director, adds, ‘The business has a market leading reputation in the provision of recruitment solutions and we are looking forward to working closely with the team to identify acquisition opportunities to deliver further growth.
‘Pertemps is an iconic Birmingham brand and the Midlands team at LDC is pleased to support the management team’s plans.’