Matrix Private Equity Partners, the small buyout specialist, has invested GBP5m in the management buyout of RDL, the European recruitment provider within the pharmaceutical, business intelligence and IT sectors.
The purchase comes amidst a crop of private equity takeovers in the recruitment sector, following a rebound in the jobs market as market confidence returns.
Matrix Private Equity Partners is taking a significant minority stake in the business.
Jonathan Gregory, who led the deal for Matrix Private Equity Partners, says: “There has been a flurry of M&A activity across the recruitment sector and the pharmaceutical and business intelligence markets have seen strong growth. As European economies emerge from the recession, the number of permanent hiring decisions is set to increase, driving profit growth for specialist recruitment companies such as RDL, that have deep sector knowledge.
“We’ve tracked this company for some time and have been impressed with the management team and business performance. Growth is expected from geographical expansion as RDL secures an increasing amount of business from both the UK and Western Europe.”
RDL is based in London and Woking and employs 70 staff. The company was established in 1992 and sources staff for over 300 companies.
The management team responsible for the transition of the business into the pharmaceutical and business services market will be further strengthened by the introduction of one of Matrix Private Equity Partners’ operating partners, Iain Livingston, who will become chairman.
Stuart Britton, managing director of RDL, says: “Our business has seen exponential growth in the last few years and we are excited about the future. Matrix Private Equity is a professional and innovative organisation and we look forward to working in partnership to build on our achievements and the growth of the business and to establish ourselves as the niche market leader in pharma and IT recruitment.”
