Private Equity News & Analysis

Alchemy moves into personnel

The firm has completed MBOs at two UK staffing specialists, marking its first move into the sector.

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UK private equity firm Alchemy Partners has announced that it has led the management buyout of Right4Staff and Draefern, two UK temporary staffing companies, from US based services business AHL Services.

The buyout team is being led by Ian Thornley, Managing Director of Right4staff.  The total transaction value for the two deals is £24m and is Alchemy’s first move into the sector.

Rachel Murphy, who co-ordinated the deal for Alchemy Partners said that the two brands would be consolidated. Right4Staff has eleven branches across Southern England whilst Draefern has 26 offices in the Midlands and North of England, meaning there is no overlap between the two firms. “We expect to launch a further 20 branches of the enlarged company over the next three years as part of our strategy to broaden the company’s product offering and develop into new service sectors.”

The UK temporary staffing market is estimated to be worth approximately £4.4bn and has achieved a compound annual growth rate of 8 per cent over the last 15 years. The sector remains fragmented with the top five companies in the sector accounting for only 17.5 per cent of the market.

The investment by Alchemy Partners has been made from its Alchemy Plan fund.