Private equity firm Bridgepoint Capital has backed a £30m buyout of Midlands based Initial Personnel Services(IPS), a recruitment agency, from parent company Rentokil Initial plc.
Adrian Willetts, a director in Bridgepoint’s Birmingham Office, said: “Having been introduced to IPS, we were keen to back its existing management team, who have an excellent track record. However, using our experience of the flexible staffing industry, we will be restructuring the business to create three specialist staffing businesses and a general operation.”
IPS will be broken up and restructured into operations focusing on Healthcare, Telecoms, Education and Commercial & Industrial.
“It was a complex deal – but we considered it the best route to unlocking value within the business,” Willetts said.
The Healthcare Division, which provides nurses, theatre staff and operating department practitioners to the NHS and private healthcare markets, has a significant market share in the West Midlands, where it has won a long-term contract to supply the Pan Birmingham Consortium. It is also expanding in Manchester and Leeds.