Impellam makes acquisition
Founded in 2004, Career Teachers is a specialist education recruitment business which sources short and long term teaching staff from the UK and internationally, placing them in positions with over 450 primary and secondary schools across London and the surrounding Boroughs.
Impellam has acquired Career Teachers for a total consideration of £22.3 million comprising an initial cash consideration of £19.1 million, a deferred cash consideration of £1.5 million and the issue by Impellam of £1.7 million in Loan Notes.
The acquisition, funded from existing bank facilities, is expected to be immediately earnings enhancing. The deferred cash consideration of £1.5 million is due in July 2014. The Loan Notes are redeemable in August 2017. In addition, a three year Long Term Incentive Plan has been put in place for the five key management shareholders.
As at 6 March 2014, the business had cash of £2.7 million. For the year to 31 August 2014, Career Teachers is expected to record adjusted EBITDA of £3.6 million (2013: adjusted EBITDA £2.7 million) on expected revenues of £21.3 million (2013: £17.9 million). The latest audited accounts for Career Teachers reported profit after tax of £1.3 million for the year ended 31 August 2013 and net assets of £1.7 million as at that date.
Julia Robertson, CEO, commented, "I am delighted that the management team who have been responsible for the growth and success of Career Teachers will be staying with the business and will take it on to the next stage of its growth and development within the Group. Career Teachers is a market leader in the provision of teachers in the London and Greater London market place and is an excellent fit into our Specialist Staffing portfolio. Whilst Career Teachers complements our existing Celsian Education business,which is a leading regional player in the provision of teachers to schools and colleges, the personality and identity of the Career Teachers brand will be retained and the two businesses will continue to be managed separately. This acquisition will strengthen the Group's position as a market leader in the education market in the United Kingdom."