MTrec Ltd, one of the North East’s leading providers of staffing and training solutions, has been acquired by Japanese-listed, Trust Tech Inc., in a £17.1m deal that is expected to create a number of jobs in the North East of England over the coming months.
The acquisition, which completed on 30 August, is Trust Tech Inc.’s first strategic acquisition in Europe. The company plans to work closely with MTrec’s existing management team to create a truly global staffing and training solution by bringing together their collective resources, expertise and experience.
In the financial year ending 31 March 2016, MTrec achieved turnover of £46m and is forecasting turnover of £59m during the current financial year. The company, which currently employs 56 staff and a cohort of 2,500 temporary workers, expects its headcount to increase over the coming months in line with the forecast turnover growth.
The increase in MTrec’s headcount will coincide with the opening of new on-site operations and branches outside of the North East.
MTrec was identified as Trust Tech Inc.’s first European strategic partner due to its exceptional growth rate and geographical location, which means it is ideally placed to serve the multinational manufacturing and engineering businesses based in the North East.
Established in 2006, MTrec Ltd is one of the North East’s leading staffing and training providers, serving the manufacturing, engineering and industrial sectors. Its wholly owned subsidiary, MTrec Care Limited, provides Nurses, Carers and Support Workers to the North-East’s care sector.
With offices throughout the North East, the business was founded by directors David Musgrave and Rob Armstrong and works with blue chip clients across industries including aerospace, automotive and Fast Moving Consumer Goods (FMCG).
David Musgrave will remain as Managing Director and will retain a 15% equity stake in the business; the existing management team, including James Doyle and Chris Salkeld, will also continue in their existing roles.
Trust Tech Inc. is a leading Japan-based staffing business specialising in the provision of dispatching, outsourcing and sub-contracting staffing solutions. The company is currently executing a growth strategy, emphasising both organic growth and aggressive acquisition.
Advising on the sale, on behalf of the directors of MTrec Ltd, was Carl Swansbury, partner at Ryecroft Glenton Corporate Finance, supported by Alex Simpson, Simon Hopwood and Charlie Burton. Legal advice was provided by Duncan Reid and Kirsty Adamson of national law firm, Watson Burton.
Carl Swansbury, partner at Ryecroft Glenton Corporate Finance, said: “David, Rob, Chris and James have built a remarkable business that has served the North East well over the past ten years. Now, with the support of Trust Tech Inc., it will be able to draw upon a significantly increased resource base to further its reach and serve new and existing clients better.
“The completion of the deal is very positive for MTrec and its shareholders as well as the North East, which will benefit from Trust Tech Inc.’s programme of investment that will create jobs and opportunities for the region’s labour force. It also serves as proof that overseas trade buyers still see the UK as an attractive option for inward investment – contrary to many of the experts’ initial predictions following the result of the European Referendum.”