Connecting to LinkedIn...

Blank

Network Group Holdings plc Has Announced Its Acquisition of Procurement People Recruitment Limited

Network Group Holdings plc Has Announced Its Acquisition of Procurement People Recruitment Limited

The Company is pleased to announce that it has completed its fourth acquisition further to its announcement on 11 April, 2011. Its subsidiary Network Recruitment Partnership Limited ("NRP") on 20 May 2011 acquired the entire issued share capital of Procurement People Recruitment Limited ("PPR"), a recruitment business specialising in the Interim and permanent placement of procurement professionals. The total consideration is a maximum of 80,000, comprising 20,000 in cash and 20,000 equity, being 94,787 NGH shares issued at 21.1p, payable on completion and up to 40,000 of deferred consideration payable in cash based on the gross profits of PPR for the year ended 31 December 2011. In addition the Company has injected 119,226 towards the working capital requirements of PPR. PPR has been acquired out of the existing cash resources of the Company.

Unaudited financial statements of PPR for the year ended 31 December, 2010 show turnover of 1.1m and gross profit of 221,000.

Immediately following completion the Managing Director of PPR has subscribed for 24.9% of PPR and has entered into the standard conversion documentation with the Company so that this equity could be converted into the equity of NGH in the future. NRP holds the remaining 75.1% of PPR.

PPR will be located at Network House in Birmingham where many of NGH's other Midlands businesses are located. PPR also has offices in Warwick and London.

The Company has agreed non-binding Heads of Terms with another two companies

Commenting on the acquisitions, Tim Watts, Chief Executive Officer of NGH, said
"Further to my comments that I made in the announcement on 05 May, 2011 this is yet another targeted acquisition, operating in a market that complements the existing NGH operations and has a presence in a sector that NGH has identified as offering exciting opportunities. I am delighted to welcome the management and employees of PPR to NGH and using our platform we will be focussed on supporting the business to grow."

Tags:

Articles similar to

Articles similar to