Synarbor confirms 18.4m takeover deal
The teacher recruitment agency confirmed its shareholders accepted the bid from the private equity investors, which equates to 37.88 pence per share.
Sovereign will pursue a buy and build strategy, while CEO Dean Kelly will remain in position to ensure a smooth handover to a (yet to be named) new CEO. David Evans will also be promoted to managing director of Synarbor.
Kelly stated, "After a long and detailed process, we are very pleased to announce that the Board, with support of in excess of 75% of shareholders, have recommended an offer from a vehicle backed by Sovereign Capital Partners.
"Soveriegn Capital is a well-established UK based PE house focussed on investments un UK-based companies in the support services, education & training and healthcare services sectors."
He added, "After completion I will remain as chief executive for a handover period until Sovereign appoint an appropriate replacement. However, I am delighted to announce that David Evans will be promoted to managing director of Synarbor. David is a very experienced education recruiter and a fantastic people manager, so I'm sure he'll do a fantastic job as MD.
"Once I have handed over Synarbor, I am keen to concentrate on the Recruitment Directors Lunch Club that I co-founded with Gary Goldsmith, as this is growing and evolving at a phenomenal pace. While I will also be investing in recruitment Start-ups and working with recruitment SMEs to help them to realise their full potential, while hopefully preparing them for their own future event."
Established in 2001, Synarbor today places teachers at around 2,000 primary and secondary schools in London and the South East and last year had sales of £30m.
It formerly handled recruitment for the health and social care sectors but has sold off these parts of the business.
Michael Needley, a partner at Sovereign, said, “We believe that Synarbor has a number of attractive characteristics including its strength of operational brands, branch network and geographical spread as well as recent growth which has resulted in improved financial performance."
Clearwater International, Eversheds and Opus advised Synarbor, Grant Thornton advised Sovereign.
As Synarbor delisted eight years ago the offer is still subject to the takeover code.