Interserve has paid £25m to acquire training and skills provider the Employment & Skills Group.
The contractor has bought the UK skills provider from Ares Capital.
ESG provides training and employment services for the government and employers and also vocational training in three new Further Education colleges in Saudi Arabia under the Kingdom’s Colleges of Excellence programme.
It has around 700 employees and supports more than 65,000 people a year into work or training.
The deal is being funded from Interserve’s existing debt facilities and the contractor expects it to be accretive in 2015.
Interserve chief executive Adrian Ringrose said: “We are pleased to have furthered our strategy by acquiring one of the UK’s leading skills and welfare providers, expanding our scale and breadth in these critical front-line public services markets, both in the UK and in Saudi Arabia and are delighted to welcome some 700 new colleagues to the Interserve Group.”
Last week, Interserve announced it had entered into a new joint venture with Saudi Arabia’s Rezayat Group to provide FM services in the Kingdom of Saudi Arabia.