Sheffield’s A4e Limited acquired for £34.5m by Staffline Group

Staffline, the staffing services, outsourcing, training and employability organisation, providing people and operational expertise to industry, announced today the acquisition of Sheffield’s A4e Limited, a provider of welfare to work and skills training services across the UK, on a debt free/cash free basis for a total consideration of £34.5m.

The acquisition is believed to be a suitable fit with Staffline’s existing employability division, which aims to speed up the company’s growth strategy.

As part of the agreement, Staffline acquired A4e’s entire issued share capital for £23.5m as well as its net debt of £11m.

Staffline’s existing bankers provided increased debt facilities to fund the cash consideration. The company’s facilities will now comprise a £35m term loan, £20m loan notes and increase existing working capital facilities of £30m.

A4e is a profitable, cash generative business expected to deliver revenues of approximately £140m and profit before tax of £10.2m for the year ended 31 March 2015.

The Directors expect the acquisition to significantly enhance earnings and to increase underlying diluted earnings per share for the period ended 31 December 2015 by approximately 26%.

Following the acquisition, Staffline will become one of the largest Work Programme providers in the UK in terms of the number of jobseekers supported and contracted regions serviced, with a Work Programme presence in nine CPAs (regions) as a prime contractor and six further regions as a sub-contractor. This is a key long term growth initiative for the company.

Andy Hogarth, chief executive of Staffline, said: “We are delighted to be announcing today the acquisition of A4e. This is an exciting milestone in Staffline’s growth, considerably expanding the size and geographic reach of our Employability offering and will result in the combined business being one of the largest Work Programme providers in the UK.

“The significant strengths of both businesses will be united and we are confident that our leading position will be a strong platform from which to develop our strategy, services and innovation.

“We look forward to creating a winning team and business, and delivering significant shareholder value.”

Andrew Dutton, group CEO of A4e, added: “We are today starting a new chapter in the history of A4e. Staffline is exactly the right fit for us: its ambitions, robust financial position and its people and business values will all support the combined business as we grow together and build on our position as a leading Work Programme provider in the UK.

“A4e is now in the perfect ownership to both develop our customers and support our employer relationships and I wish the combined business every success in the future.”

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