Hale HR intelligence specialists in £3.5m MBO

HR search and intelligence specialists Armstrong Craven have undergone a management buyout following £3.5m investment from ISIS Equity.

The Hale-based firm will now establish itself as a separate entity from its former parent company, Work Group plc.

Armstrong Craven founder Sue Craven led the deal along with CEO Matthew Mellor and COO Rachel Davies.

Mr Mellor said: “This investment will support Armstrong Craven as it continues to expand its international footprint by targeting new geographies and opening international offices in North America and South East Asia.

“It will also support the development of the infrastructure, operations and people; enabling the business to build on strong relationships with existing clients and create new opportunities for growth.”

Nick Holder led the deal on behalf of ISIS Equity Partners along with Peter Clarke. Mr Holder said: “In an environment where there is a growing global shortage of talent, a heightened requirement to manage succession planning and diversity in the workforce, we foresee an increased demand for Armstrong Craven to support clients investment in strategic workforce planning.

“The Businesses differentiated proposition developed over many years means it is ideally placed to support national and international clients with these issues. We very much look forward to partnering with the team to help facilitate their ambitious growth plans.”

Armstrong Craven was established in 1990 as an outsourced partner to traditional recruitment practices before it was acquired by Work Group in 2005, prior to AIM listing.

The firm now has Manchester and London offices and supports a global client base across a breadth of sectors including FMCG, technology and not-for-profit.

Clearwater Corporate Finance advised on the deal with a team comprising partner Michael Reeves and assistant director Chiara Pettinicchio.

Mr Reeves said: “Armstrong Craven has grown into a leading specialist in intelligence and research, serving blue-chip clients. This MBO will provide it with the capital to pursue new revenue streams and expand into new territories, including Singapore and the US. ISIS is the perfect partner to support this strategy.”

Legal advice to ISIS was provided by Gregg Davison and Andy Phillips of Pinsent Masons in Manchester. Chris Heatlie and Sarah Cumming of BDO Manchester practice provided financial due diligence advice. Tom Raymond at Armstrong Transaction Services provided commercial diligence on the transaction.