Change Recruitment Group in £14m MBO

Change Recruitment Group, Scotland's leading independent recruitment consultancy have completed an MBO backed by NBGI Private Equity ("NBGI PE"), the small to mid-market buyout specialist, with advice from Baker Tilly, one of the UK's leading business advisory firms. Debt has been provided by Clydesdale Bank, a member of the National Australia Bank Group. The highly experienced and dynamic management team is led by Suzanne Ramsay and includes Laura Drysdale, Allan Dickson & Brian Robinson.

Change Recruitment Group, through its divisions Change, The Resource Group, Change Solutions and Change International, covers a broad spectrum of the recruitment market from offices in Glasgow and Edinburgh. The business was founded in 1970, as Douglas Llambias Associates before rebranding to Change in 2000, and has built a strong reputation over the years among clients and candidates alike as consistently providing a superior level of service and supporting key growth areas in the Scottish economy. Change is on the Preferred Supplier List of over ninety mostly blue chip companies, and also offers managed agency and complete outsourced recruitment (RPO) services.

Change is focused on the recruitment of professionals in Financial Services and Investment, Accounting and Finance, Human Resources, Learning & Development and Legal. The Resource Group specialises in placing people into support & technical functions in three sectors: Secretarial and Administration, Call & Contact Centres, and Rail & Transportation. Change Solutions has grown in recent years to become a core part of the Group, dedicated to providing Recruitment Managed Services via Response Handling, Campaign Management, Managed Agency, Vendor Neutral and Flexible Agency Supplier Management. The fourth division, Change International, has grown rapidly to become the market leader in the remote placing of international qualified accountants and other professionals throughout the world’s key financial centres.

The management team intends to capitalise on the strength of Scottish market whilst also expanding its international business. The diverse spread of business offers significant opportunities for organic development as well as structural resilience to the economic cycle. Further plans for the business include additional improvements to the financial and operational support functions, as well as the addition of new product lines and development into new sectors. Tim Moynihan, until recently Chairman of Directorbank and previously a Finance Director with Hays, will join the board as Non-Executive Chairman. NBGI Private Equity is committed to backing leading businesses and management teams throughout the UK. This is NBGI PE’s second investment in Scotland in 18 months, following its support for the successful £40m MBO of Stirling-based Superglass in August 2005.

Suzanne Ramsay, Chief Executive, Change Recruitment Group comments:
“We are thrilled to have NBGI Private Equity’s backing. This is an exciting time for Change – there is so much potential for growth, both within the Scottish market and further afield. We have a solid foundation upon which to grow, and combined with NBGI PE’s sector experience and resources, we can see the business growing in leaps and bounds. I am greatly looking forward to working together to realise our ambitions.”

Mark Owen, Director, NBGI Private Equity comments:
“We are delighted to once again be investing in the recruitment sector, backing a strong management team with a leading market position. This transaction follows the success of our prior investment in Walker Hamill and our more recent investment in Ochre House, a buyout from Trinity Mirror. Change is typical of the ‘traditional economy’ businesses we target and we are very excited to be working with such a committed team. Together, we aim to develop Change into a dominant player in the recruitment industry.”
http://www.nbgiprivateequity.co.uk

Gordon Young, Senior Corporate Partner, Clydesdale Bank comments:
"We are delighted to have provided senior debt facilities at a very exciting time for the Change business. The management team have impressed us throughout with their drive and determination to build on what is already an excellent business. The deal reflects the continued success of the Bank's integrated approach involving treasury specialists and the relationship team led by Specialist & Acquisition Finance to provide a holistic and seamless service".
http://www.cbonline.co.uk