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Growing Japanese staffing business to acquire Newcastle’s MTrec

Newcastle-based MTrec Limited, one of the region’s largest training providers, is set to become the first European company acquired by growing Japanese staffing firmTrust Tech Inc.

Expected to be completed on August 30th, the acquisition will help the company establish a presence in the UK and European markets.

Launched in 2006, MTrec Ltd is one of the North East’s most established staffing and training providers, serving the manufacturing, engineering and industrial sectors. Its wholly owned subsidiary, MTrec Care Limited, provides Nurses, Carers and Support Workers to the North-East’s care sector.

Employing 56 staff and with a cohort of 2,500 temporary workers placed into clients’ businesses across the region, MTrec Ltd has enjoyed strong growth since inception with an average year-on-year turnover growth of around 23 percent. During the financial year ended 31 March 2016, the business delivered turnover of £46m.

With offices throughout the North East, the business was founded by directors David Musgrave and Rob Armstrong and works with blue chip clients across industries including aerospace, automotive and Fast Moving Consumer Goods (FMCG).

David Musgrave will remain as Managing Director and, alongside the existing management team, including James Doyle and Chris Salkeld, will work with Trust Tech Inc. to develop the business over the coming years to become a leading national and European staffing and training provider.

Trust Tech Inc. is a leading Japan-based staffing business specialising in the provision of dispatching, outsourcing and sub-contracting staffing solutions. The company is currently executing a growth strategy, emphasising both organic growth and aggressive acquisition.

Advising on the sale, on behalf of the directors of MTrec Ltd, is Carl Swansbury, partner at Ryecroft Glenton Corporate Finance, supported by Alex Simpson, Simon Hopwood and Charlie Burton. Legal advice is being provided by Duncan Reid and Kirsty Adamson of national law firm, Watson Burton.

Yutaka Nishida, President and Representative Director of Trust Tech Inc., said: “It is our highest delight to welcome MTrec to our group.

“Focusing on manufacturing and engineering sectors, both Trust Tech and MTrec are fast-growing and enthusiastic companies. We are covering different geographic areas of the world, and can jointly grow faster.”

David Musgrave, Managing Director of MTrec Ltd, said: “Becoming Trust Tech Inc.’s first European strategic partner is testament to the quality of the business and the strong growth we have achieved.

“It is a fantastic opportunity for MTrec and its current management team to take the business into new markets and to enable the business to deliver global staffing and training solutions to our existing and prospective clients.”

Carl Swansbury, partner at Ryecroft Glenton Corporate Finance, said: “This is a very positive transaction for the North East, and demonstrates the high levels of interest overseas companies have in acquiring fast-growth, profitable, well-run UK based businesses.”

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