Finance company advises on Corporate Resources FlexPlus deal
The $800m turnover technology, staffing and consulting services firm acquired Leicestershire-based Flex Recruitment Plus Limited (“FlexPlus”) this week.
The deal not only originated in the North East with Carl Swansbury and Abu Ali of Ryecroft Glenton Corporate Finance (“RGCF”) sparking interest in a UK acquisition from Mark Levine, CRS’s chief operating officer, but the corporate finance team for Midlands based FlexPlus was also from the North East, with RGCF and Square One Law LLP advising on the sale.
FlexPlus is a national staffing and technology business specialising in the placement of temporary, contract and permanent candidates into the logistics, fulfilment, warehousing and retail sectors.
Following the successful completion of the sale to CRS, the founders and shareholders of FlexPlus will remain with the business and will be working alongside CRS to help strengthen and deliver FlexPlus’ service capabilities to new and existing clients.
Carl Swansbury, director of Ryecroft Glenton Corporate Finance said: “This is a great transaction to have advised on – one which has resulted in one of America’s largest technology and staffing companies acquiring a privately owned business here in the UK.”
“FlexPlus is an innovative business and has a strong OnSite & OnLine presence across the UK, and a fantastic industry reputation. With the strength and resources of CRS FlexPlus will continue to go from strength to strength.”
Carl Swansbury scoped CRS Inc’s acquisition search criteria and suggested FlexPlus as a suitable acquisition target in August of this year, which subsequently resulted in RGCF advising on the sale of FlexPlus.
“We are very excited with the addition of FlexPlus to our team”, said Mark S. Levine, Chief Operating Officer for Corporate Resource Services, Inc. “This acquisition will act as our platform company in Europe and we will be utilizing the existing management team at FlexPlus to build our European business both organically and through acquisitions.”
“The FlexPlus acquisition gives us a strategic presence in the UK and Europe”, said Michael J. Golde, Chief Financial Officer of Corporate Resource Services, Inc. "This is a major win and will enable us to execute on cross-selling opportunities into the United Kingdom with CRS’ existing client base. We see great potential in the UK and broader European market as economic conditions are improving and the demand for recruitment is expanding. FlexPlus’s technology offerings are also a perfect fit with ours. The acquisition will be immediately accretive to earnings, and as we welcome FlexPlus into our family, we see a clear path to creating even greater overall profitability and increasing value for our shareholders.”
Adrian Hobbs, Flex Plus’ managing director said: “The strategic and cultural fit of Flex Plus and CRS is ideal. We have grown Flex Plus considerably and profitably over recent years, and believe that the future growth of the business is best achieved in partnership with a larger business that can help us diversify into new locations and sectors.
“Carl Swansbury and his team at RGCF, along with James Bryce and his team from Square One Law LLP have worked tirelessly throughout the entire transaction to ensure our objectives have been achieved. They have been central to this deal, and have proved to be invaluable team members.”
The Square One Law team was led by James Bryce, supported by solicitors Jemil Visram and Lucy Bailey. James Bryce Commented: “Having worked with the management team at FlexPlus over a number of years it was extremely satisfying to be part of the team delivering this transaction, which represents a fantastic opportunity for both the management of FlexPlus and for CRS to build the UK business.”
Flex Plus has 40 employees, and places around 750 temporary workers on a daily basis. Its innovative online recruitment platform, i-Integra enables the Company to provide 360 degrees recruitment solutions to its clients.
Ryecroft Glenton Corporate Finance has a successful track record of advising on transactions in the staffing and technology sectors and have advised many UK staffing and technology businesses over the past 18 months. Carl Swansbury added: “We have a detailed knowledge of the international staffing market and know of the growth objectives of many of the large national and international corporate acquirers. This transaction is a great example of RGCF’s international research capabilities and understanding of the staffing market.”