Listed South African Employment Services Group, Workforce Holdings, Enlists MC Vanguard Corporate Finance for UK Acquisition Drive
North West based MC Vanguard Corporate Finance (MCV) has been appointed to search for acquisition targets as part of Workforce Holdings Limited’s (Workforce) acquisition strategy into new markets, in particular, the United Kingdom.
Workforce, which is listed on AltX board of the Johannesburg Stock Exchange (the alternative public equity exchange for small and medium sized companies in South Africa), has a presence across Southern Africa, including Mozambique, Botswana, Namibia, Mauritius, as well as South Africa itself. The employment services group provides diversified human capital solutions through three primary divisions, Staffing & Outsourcing, Training & Healthcare and Financial & Lifestyle.
The acquisition strategy builds on a strong performance at Workforce during 2016, with revenue up 29.3% to 2.5 billion Rand (approximately £150 million GBP), and with the interim June 2017 results showing an increase of 14.5% compared to the first half of the previous year.
Through strong organic and acquisitive growth, Workforce has grown to become one of the largest temporary employment services and human capital solutions providers in South Africa, employing around 1,200 permanent staff and 35,000 weekly contractors across 3,600 client accounts. Workforce operates in a wide range of industries, including, manufacturing, construction, transportation, nursing and the public sector.
Acquisitions are an important source of growth and diversification for Workforce and we are committed to our acquisition strategy. We are excited to have mandated MC Vanguard to identify and source UK acquisition opportunities that share Workforce’s entrepreneurial values and are respected brands in their specific industry sectors.
This acquisition drive follows significant deal making by Workforce of late, having acquired 6 companies since October 2015, including Oxyon Human Capital Solutions, a technical & artisanal recruitment business, and KBC Holdings, which provides safety training and contractor management, primarily in the mining and minerals industries across South Africa.
The United Kingdom fits into Workforce’s acquisition strategy particularly well, due to the language and cultural commonalities between the United Kingdom and South Africa. On behalf of Workforce, MCV will target companies across the human capital and recruitment industries; including technical & engineering contract staffing as well as training & skills development. It is expected that most acquisition candidates will be generating a profit of between £1 million and £5 million.
James Curtis, Corporate Finance Executive at MC Vanguard, said: "Workforce Holdings is growing at an exciting and impressive rate, MC Vanguard Corporate Finance will be engaging the UK recruitment and employment services market to identify suitable acquisitions that will integrate well into the wider Workforce group. Clearly, we will be interested in speaking to strong management teams who believe their recruitment or workplace training company could see substantial synergies as part of a wider diversified group."