CPL Resources has announced the acquisition of a British recruitment company that specialises in the healthcare sector.
CPL has agreed to spend £8.1m (€9.29m) on a 91% stake in RIG Healthcare Group, which builds on the acquisition of another British recruitment firm in September 2015.
RIG Healthcare reported sales of £53.5m last year, and CPL says it expects the investment to be earnings enhancing once completed.
RIG has a focus on market niches within the Locum Doctors and Allied Health Professions and has five offices across the UK.
Commenting on the acquisition, CPL CEO Anne Heraty said: "We are very pleased to expand our presence in the UK and welcome the highly talented professionals from RIG to CPL.
"The recruitment expertise and international talent pool of doctors and healthcare professionals provided by RIG brings immediate strategic value to CPL's broad portfolio of innovative workforce solutions in the healthcare sector.
"This acquisition also allows us enter into doctor recruitment which will deliver real value for our clients."
In an investor note, Davy said it expects the deal to be well received and that it complements CPL’s existing healthcare business while also demonstrating "CPL’s ability to derive value from its well-capitalised balance sheet".
CPL also published a trading update this morning, in which it said its business had been affected by Brexit and the election of Donald Trump in the United States.
Increased uncertainty had led some companies to delay decisions, which had benefited its temporary and contractor business but had a negative impact on the number of permanent placements being listed in certain sectors.
CPL said it expected its revenues to be in line with expectations for the year to the end of June, though its pre-tax profit would likely be lower than forecast.
Davy said the trading update "alludes to market uncertainty and activity delays in the first half of the year".
