News
Cavendish advises on the sale of RIG Police Recruit to G4S Justice Services Limited
15 October 2007Cavendish Corporate Finance is pleased to announce the sale of RIG Police Recruit to G4S Justice Services Limited, a subsidiary of the international security solutions company, G4S plc.
It is the firm's third sale of a recruitment business this year, indicating both the continued buoyancy in the sector and Cavendish's expertise in the sale of companies in this area.
RIG Police Recruit was founded in 2002. Since its inception it has worked with the Home Office and Police Authorities across the UK to establish a means for retaining the skills and experience of retired police officers in a more flexible work environment. Over the past five years RIG Police Recruit has grown to be the UK's largest organisation serving this market, and is the only organisation providing a national coverage and has placed staff in all 43 UK Police Authorities and in the Republic of Ireland (GARDA). RIG Police Recruit has in excess of 11,000 former police officers and civilian specialists on its books.
The acquisition by G4S will allow that organisation to strengthen its relationship with the police and to widen the range of services they are able to provide.
The price paid for the company by G4S was not disclosed. However, in the year to 31 December 2006 RIG Police Recruit had revenues of £13.6 million and a pre-tax profit of £1.1 million. Continued growth during the course of 2007 should see revenues rise to over £17 million.
RIG Police Recruit is the trading name of RIG-PR Limited.
Commenting on Cavendish's involvement with the transaction, Bryan Lloyd, Chief Executive of RIG Police Recruit said:
''The Cavendish team of [Raymond Fagan] and Edward Lethbridge were active at all stages of the negotiation to ensure that the transaction completed within a tight deadline and on terms that were satisfactory to all our shareholders. They knew where our key negotiating parameters were and worked with us to ensure all our stakeholders would see the positive benefits of the transaction.''
Cavendish director [Raymond Fagan] commented:
''We were very pleased to work with the RIG Police Recruit shareholders in completing this transaction in a very interesting area of the recruitment marketplace. The valuation we achieved is one of the highest multiples seen in the recruitment sector this year. This demonstrates both the quality of the business and unique position that RIG Police had secured in this market.''
For further details contact:
[Raymond Fagan], Director
Edward Lethbridge, Associate Director