Intersave Acquires Welfare-To-Work Business
Interserve, the international support services and construction group, is pleased to announce that it has acquired Business Employment Services Training Limited (BEST), one of the UK's leading providers of training and development for job-seekers and employers. The acquisition increases Interserve's delivery of front-line services, particularly in the Department of Work and Pensions' Work Programme, and forms part of the company's strategic development as a key public service provider.
An initial cash consideration of £17.5 million will be paid from Interserve's existing cash and debt facilities. Deferred consideration of up to £0.75 million will be payable subject to agreement of completion accounts. BEST's pro forma annual revenue is £17 million, generating operating profit of £3 million, and its gross assets are valued at £2 million. The transaction is expected to be accretive to headline earnings per share in the first full year of ownership. Michelle Manson and Andrea Cook, respectively Managing Director and Operations Director of BEST, will remain with the business following the acquisition.
BEST operates across South and West Yorkshire, a region which employs approximately 3 million people across 100,000 businesses and has an
unemployment rate of 8.7 per cent, similar to the national average. BEST delivers services in government-sponsored programmes, the majority of its
business being related to the Work Programme.
Interserve is already involved in the Work Programme through its Rehab Jobfit joint venture, which has contracts in Wales and the south-west. This
acquisition expands Interserve's participation in this area of key government policy and enables it to use BEST's capabilities for further development in related areas.
Adrian Ringrose, Chief Executive of Interserve, comments, "The acquisition of BEST reflects our strategy of developing as a top-tier public services
provider, delivering front-line services. It builds on our existing relationships with both the DWP and the community in Leeds and the surrounding
area, provides a foundation for offering more broadly-based community services and enhances our role in training and skills development."
Adrian Ringrose and Dougie Sutherland, Managing Director of Interserve Developments, will host a conference call for analysts and investors at 8:30am on 4 May; for details please contact Tom Eckersley at Maitland on 020 7379 5151.