Couple sells jobs firm for €10m

A Cork couple are set to share up to €10 million by selling their recruitment company to Newcourt, the listed recruitment and security services group.

Newcourt said yesterday that it was buying Kenny-Whelan, a Cork-based recruitment firm established in 1989 and fully-owned by Tom Whelan and his wife, Bridget Lyons.

Under the terms of the deal, Kenny-Whelan will receive an initial payment of €2.457 million, with a further consideration of up to €7.5 million due over the next two years, depending on the Cork firm's financial performance.

Kenny-Whelan specialises in providing contract staff to the pharmaceutical and engineering sectors. It services both national and international companies.

The firm employs four consultants in Cork, with Mr Whelan set to continue as managing director under the sale deal. He will also join the executive management committee of Sigmar, Newcourt's specialist recruitment subsidiary.

Neither party disclosed the profitability formula they will use to judge the final price to be paid for Kenny-Whelan, but Newcourt noted that the arrangement contains "certain protections" in its favour.

In the year to the end of June, 2005, Kenny-Whelan had a turnover of €10.6 million, and recorded pretax profits of €321,000. Net assets at that stage were €12,000, including debt of €670,000.

Newcourt, which is in a closed period, said that it would fund the acquisition from its own resources.

The company said the price to be paid for Kenny-Whelan reflected its view of likely levels of "maintainable profit" after synergy benefits and other future cost savings.

Ted O'Neill, Newcourt's chief executive, said the deal should make a "good contribution" to the firm's bottom line.

"It will be a key component of the Sigmar Group," he said.

Mr Whelan added that the deal made "financial and business sense for both companies".

"There will be no noticeable change to our business arising from this transaction," he commented.

Shares in Newcourt gained two cent yesterday, closing at €1.30.