Interserve acquires welfare-to-work business

Interserve has acquired Business Employment Services Training Limited (BEST), a major UK provider of training and development for job-seekers and employers.

Interserve, the FTSE 250 support services and construction company, has paid an initial consideration of £17.5m from its existing cash and debt facilities to fund the acquisition, which has been made to broaden its range of front-line services, particularly in the Department of Work and Pensions' Work Programme (DWP).

A further consideration of £0.75m is payable once the completion of accounts has been agreed.

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BEST's pro forma annual revenue is £17m, generating operating profit of £3m, while its gross assets are valued at £2m, the statement from Interserve said. The transaction is expected to boost headline earnings per share in the first full year of ownership.

Adrian Ringrose, Chief Executive of Interserve, said the acquisition of BEST "builds on our existing relationships with both the DWP and the community in Leeds and the surrounding area, provides a foundation for offering more broadly-based community services and enhances our role in training and skills development."

NR