Empresaria increases holding in Consol to 852.5pc
LONDON: Empresaria, the international specialist staffing group, announced the cash acquisition of a further 17.5% interest in a subsidiary, ConSol Partners (Holdings) Limited, taking its total investment to 82.5 percent.
Empresaria has a long-term policy of purchasing non-controlling interests where it sees real value for shareholders and each acquisition is assessed on performance.
The shares have been acquired from management shareholders, including Graeme Hubert and Marc Cohen who are directors of ConSol, for total consideration of £3.5 million on terms in line with the original acquisition in 2016. The funds will be provided from the Group's existing bank facilities.
ConSol is a specialist recruitment business in the IT sector with a focus on niche sectors across communications, cloud and digital. With offices in London, Los Angeles and, from April 2019, Austin, Texas, they work with clients across the world and have placed clients in more than 55 countries.
ConSol has performed well since joining the Group and delivered on our expectations. This investment reflects the Group's commitment to its core sectors where it sees high growth potential.
The acquisition of non-controlling interests from Graeme Hubert and Marc Cohen, directors of ConSol, are considered related-party transactions for the purposes of Rule 13 of the AIM Rules for Companies. The directors consider, having consulted with Arden Partners, the Company's nominated adviser, that the terms of the non-controlling interest acquisition are fair and reasonable in so far as Empresaria's shareholders are concerned.
ConSol contributed £2.3 million to the adjusted profit before tax of Empresaria in 2018 and the acquisition is expected to be earnings accretive in the current year.
Rhona Driggs, Chief Executive Officer of Empresaria, commented: "ConSol has performed strongly since joining the Group in 2016. Operating in one of our core sectors, we see great potential for this business and as such we have continued to invest in the business post acquisition; launching a sub-brand, 4ward Talent, opening a new office in Austin, Texas and now acquiring an increased stake in the business in line with our long-term policy."