Cpl Resources acquires RIG Healthcare group for £8.1m

Dublin-based jobs agency Cpl Resources has announced a takeover of RIG Healthcare Group in the UK for £8.1 million (€9.3 million).

The company has acquired 91 per cent of the specialist healthcare recruiter which trades as RIG Locums and RIG Medical Recruit.

RIG Healthcare, which has five offices across the UK, generated sales of £53.5 million last year. It also recorded an ebitda (earnings before interest, taxes, depreciation and amortisation) of £2 million.

RIG supplies qualified medical professionals to the UK's National Health Service (NHS) with a particular focus on radiography, occupational therapy, pharmacy and physiotherapy.

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Cpl said healthcare recruitment, staffing and training had long been one of its “most important” sectors in Ireland and the UK.

The acquisition is Cpl’s entry to the locum doctor market and enhances the company’s operating presence in the UK, following the acquisition of Clinical Professionals in September 2015.

Management team

The existing management team of Affi Khan and Rob Bryan will remain with the business and are co-investing in RIG as part of the transaction.

Mr Khan, currently managing director of RIG, will assume the role of chief executive of RIG. Mr Bryan has been appointed to the role of managing director.

Mr Khan and Mr Bryan said they were committed to growing the RIG business as part of Cpl and have invested in a 9 per cent shareholding alongside Cpl.

Separately, Cpl said in a trading statement that Britain’s European Union exit had “caused some uncertainty” over the past six months, which had delayed some of its markets.

“Issues relating to Brexit and changes to the US administration have caused some uncertainty and, in turn, delays in our market, affecting some of our services and sector mix,” said the statement.

“These events have been positive for our temp and contractor businesses, but have had a negative impact on permanent placements in some business sectors and markets.”

The company said it expected revenue for the year to June 30th to be in line with market expectations, and profit before tax to be slightly lower than current expectations.

“Our strong track record of positive cash generation, gives the group the flexibility to invest in acquisitions while at the same time maintaining strong capital returns,” it said. “The group cash reserves post the acquisition consideration are in excess of €28 million.”

Cpl chief executive Anne Heraty said the recruitment expertise and international talent pool of doctors and healthcare professionals provided by RIG would bring "immediate strategic value" to Cpl.

“This acquisition also allows us enter into doctor recruitment which will deliver real value for our clients,” she said.

An analyst with Davy said he expected the acquisition of RIG would be “well received”.

“It complements Cpl’s existing healthcare business and will drive new opportunities for profitable growth but, importantly, it also demonstrates Cpl’s ability to derive value from its well-capitalised balance sheet,” he said.