Another part of Midland entrepreneur Tim Watts’ Pertemps empire changed hands yesterday in a £17.85 million shares deal.
Pertemps People Development Group (PPDG), which is based in Edgbaston and specialises in getting the long-term unemployed back into work, was taken over by Aim-listed Network Group Holdings which itself was spun out of Pertemps in 2004.
Network Group said it was issuing more than 46.4 million new 35p shares in order to acquire a 67.1 per cent stake in PPDG.
The deal, which was classed as a reverse takeover by the Aim authorities on account of PPDG’s size, needs the approval of Network Group’s shareholders.
Application has been made to the London Stock Exchange for the new shares to be admitted for trading on Aim from April 4.
Network Group chief executive Jon Smith said acquisition of PPDG would see the Meriden-based company’s turnover grow to about £120 million a year, making it one of the biggest specialist recruitment and outsourcing specialists in its sector.
PPDG’s management team, led by chief executive Colin Birchll, and its 650 employees, who work in offices in Birmingham, the North West, the North East, Herefordshire and Wales, would be retained although some back office functions might merge.
Pertemps’ main recruitment agency business is not affected by yesterday’s deal and Mr Watts will retain a sizeable minority shareholding in PPDG.