Interserve has paid an initial £17.5m to buy UK training and development firm Business Employment Services Training Limited.
The company said the acquisition would increase its delivery of front-line services, particularly in the Department of Work and Pensions’ Work Programme, and forms part of the company’s strategic development as a ‘key public service provider’.
Further to the initial £17.5m will be a deferred payment of up to £0.75m, payable subject to agreement of completion accounts.
BEST’s pro forma annual revenue is £17 million, generating operating profit of £3 million, and its gross assets are valued at £2 million.
BEST’s managing and operations director Michelle Manson and Andrea Cook will remain with the business following the acquisition.
The training firm operates across south and west Yorkshire, a region which employs approximately 3 million people across 100,000 businesses and has an unemployment rate of 8.7 per cent, similar to the national average.
BEST delivers services in government-sponsored programmes, the majority of its business being related to the Work Programme.
Interserve chief executive Adrian Ringrose said: “The acquisition of BEST reflects our strategy of developing as a top-tier public services provider, delivering front-line services.
“It builds on our existing relationships with both the DWP and the community in Leeds and the surrounding area, provides a foundation for offering more broadly-based community services and enhances our role in training and skills development.”