Impellam acquires Bartech Group
Impellam's directors believe that Bartech represents a highly attractive acquisition for the company which further accelerates the delivery of Impellam's stated strategy:
For the 12 months to 31st December 2015, Bartech is expected to achieve an adjusted EBITDA of $12.8m (2014: $9.6m). It is also expetced to generate net fee income (NFI) of $48m (2014: $43m) and turnover of $272m (2014: $226m). As of 30th September 2015, Bartech had net assets of $21.6m. The NFI for 2014 was $26.8m in respect of Managed Services and $16.1m in respect of specialist staffing. 2014 EBITDA, pre central costs of $8.5m, was $8.4m for managed services and $9.7m for specialist staffing.
Bartech's CEO, David Barfield, will join the Impellam Group, becoming CEO of Impellam's North American businesses including Bartech. Mike Bixler, Impellam's current North America Managing Director for Specialist Staffing, will become Managing Director for the enlarged Specialist Staffing business, reporting to David Barfield.
Julia Robertson, chief executive officer of Impellam Group, commented, "The acquisition of Bartech is another significant step forward for Impellam and will accelerate the achievement of our strategic goals. There is a strong cultural fit between our two businesses and the combined management team in North America has an exciting opportunity to create top line growth by achieving increased market share at strong margins and bottom line growth by consistently delivering operational improvements and synergy benefits.
"The combination of our leadership position in the UK MSP market and the highly respected Bartech and Guidant brands in North America will enable us to offer our MSP clients a global solution delivered by experts in our local markets.
"I am pleased to welcome David Barfield to the Impellam Group and I look forward to working with him, and all his new management team, as our North American businesses deliver the next stage of their growth and development."
Barfield said, "Bartech has a proud heritage of integrity and joining Impellam Group, a company that exemplifies the principles upon which my parents founded our firm, presents a wonderful opportunity for our loyal team members and candidates alike. Further, the collective strength of our staffing and managed services brands will deliver enhanced capabilities, breadth and scale to help us support our clients' growth objectives both in the USA and Europe. I look forward to working with Julia and leading the combined North American businesses."
Impellam also provided a trading update, stating the following:
Trading since the announcement of the interim results on 30 July 2015 has been in line with management expectations. There is currently significant disruption in the English healthcare market as a result of Government announcements regarding caps on locum pay rates and agency margins, which may have a short term financial impact on our healthcare businesses. Despite this, we remain confident that our strategy of reducing our reliance on the UK market and our market leading position in Managed Services, where we support the NHS to reduce its total cost of agency workers, will enable our healthcare businesses to outperform the market over the medium to longer term. The Company will provide a further update on second half trading early in 2016.