AIM listed accounting, business and tax advisory firm Vantis has acted as financial adviser and project manager to Contracting Solutions during its £18.6m acquisition of AIM listed IT recruitment company Lorien Plc. The deal resulted in a cash payment of £1 per share to Lorien shareholders, with an initial Offer posted to Lorien shareholders on 31 July 2007 becoming unconditional on 3 August.
Both Contracting Solutions and Lorien are active in the IT recruitment sector, and Christopher Sawyer, Chairman of Contracting Solutions, believed a stronger presence would be created by combining the skills and customer base of both companies. For Lorien, the acquisition provides an opportunity to exploit opportunities for growth through access to additional resources and capacity. The enlarged entity will have turnover in the region of £200m and five offices throughout the UK.
A team of senior corporate finance specialists from Vantis, including Peter Drown, Simon Hammerton, Richard Thacker and Lionel Blackledge, acted for Contracting Solutions and raised £31m of debt funding through Lloyds TSB as part of the project. Commenting on Vantis’ support, Steve Buckmaster, Business Development Director at Lloyds said, ‘‘The Corporate Finance team at Vantis were key components in ensuring that funding was made available for this transaction. They provided us with unwavering support and their belief in our ability to deliver was much appreciated. We hold Vantis in very high regard and are delighted to recommend them to others.”
Lorien announced a 16.3 per cent increase in consolidated turnover to £150.3 million in its results published on 13 February 2007, and will provide an important new revenue stream for Contracting Solutions, while strengthening the company’s overall position in a competitive market.
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