Private equity firm Key Capital Partners (KCP) has made its first investment after backing the management buy-out of a Birmingham-based recruitment company.
Private equity firm Key Capital Partners (KCP) has made its first investment after backing the management buy-out of a Birmingham-based recruitment company.
KCP has bought a minority stake in Templine Employment Agency, which provides staff to the distribution, warehousing and industrial sectors, after it invested £4.3 million in the deal.
The buy-out was led by managing director Tony Bucciero and newly appointed non-executive chairman Stewart Rogers.
“The distribution, warehousing and industrial sectors have remained particularly buoyant throughout the UK and have a strong need for dedicated recruitment services,” Bucciero said. “We aim to continue building on the reputation we have in this sector and expand the services we offer to respond to the needs of the market.”
KCP partner Owen Trotter, who has become a non-executive at Templine, added that the company has shown impressive growth in the past few years. “Tony and his team have a strong plan for the continued development of the business and we are looking forward to working with them.”
The deal was supported by senior debt and working capital provided by Yorkshire Bank Specialist & Acquisition Finance. The bank’s team was led by Ian Howey and Ian Mansell, who were introduced to the deal by the buy-out team’s corporate finance adviser Grant Thornton.
Mansell added: “We are delighted to have supported KCP in its first investment and particularly pleased that this has involved a Birmingham-based business, with excellent prospects, led by a dynamic management team.”
Grant Thornton’s Simon Clewlow said: “This transaction demonstrates that, in the mid-market, bank and private equity appetite for high-quality businesses such as Templine remains strong, despite fears about the impact of the recent credit crunch.”
Yorkshire Bank received legal advice on its funding by Alistair Hardie, a partner at law firm Martineau Johnson.
Hardie said the bank designed its funding package to react positively to changes in the deal’s structure.
“What really struck me on this transaction was the quality of the business and its management team as well as the co-operative approach of all parties involved,” he added. “In particular the bank and Key Capital Partners were focused on the important aspects of the transaction and were prepared to accept sensible positions on documents rather than seeking to score points or prolong negotiations just for the sake of it.”
Templine Employment Agency, which has branches in Leeds, Luton, Coventry and Leicester, also provides on site recruitment services to several logistics and distribution companies.
