Berkeley Scott is buying its much larger recruitment rival Quantica for £28.3m.
Berkeley Scott, which specialises in leisure recruitment, is valued at around £11m. It is offering 47.5p a share in cash for Quantica, which is involved in professional services recruitment. There is also a share alternative to the cash bid of 19 Berkeley Scott shares for every 16 Quantica shares. Shareholders owning nearly half of the shares in Quantica have already opted for the share alternative.
The original announcement that revealed the bid talks said that the bid would be around 50p a share. Quantica is profitable but there is scope to improve its performance. Quantica itself has grown through acquisitions but its progress has stalled in recent years. The fact that so many shareholders are opting for the share alternative shows that they believe that Berkeley Scott can make more of the business.
Former Hotgroup boss Tony Reeves took charge of Berkeley Scott at the beginning of this year. He and co-chairman John Bowmer invested £2.5m in the company at the time. John Rose was appointed chief executive in May and he will retain that role in the enlarged group.
This is likely to be the first of many acquisitions as Berkeley Scott becomes involved in consolidation in the recruitment sector.
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