Member Article

Japanese firm to create hundreds of jobs in North East following £17m acquisition

North East training and staffing provider MTrec Ltd has been acquired by Trust Tech Inc. in a £17.1m deal, the Japanese-listed firm’s first strategic acquisition in Europe.

The acquisition, which completed on 30 August, is expected to create hundreds of jobs in the region as Trust Tech hopes to build a base for further acquisitions throughout the continent.

The company plans to work closely with MTrec’s existing management team to create a global staffing and training solution by bringing together their collective resources.

In the financial year ending 31 March 2016, MTrec achieved turnover of £46m and is forecasting turnover of £59m during the current financial year.

The company, which currently employs 56 staff and a cohort of 2,500 temporary workers, expects its headcount to increase over the coming months in line with the forecast turnover growth, creating opportunities for temporary workers across the region and new positions within MTrec.

The increase in MTrec’s headcount will coincide with the opening of new on-site operations and branches outside of the North East.

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 will retain a 15% equity stake in the business; the existing management team, including James Doyle and Chris Salkeld, will also continue in their existing roles.

Trust Tech Inc. is a 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.

Trust Tech Inc. is being advised by Philip Ellis of Optima Corporate Finance working in partnership with Yoshiharu Ohi, CEO of Global Business Consulting Corporation in Japan.

Yutaka Nishida, President and Chief Operating Officer, said: “It is our highest delight to welcome MTrec to our group. We are covering different geographic areas of the world and can jointly grow faster.”

David Musgrave, Managing Director of MTrec Ltd, said: “The completion of the deal marks the beginning of a new and exciting chapter at MTrec that will see us invest heavily in our operations to develop our service provision even further.

“The combined knowledge of MTrec and Trust Tech Inc. will enable us to deliver further growth by offering our clients training and staffing solutions on a regional, national and international basis”.

Carl Swansbury, partner at Ryecroft Glenton Corporate Finance, added: “David, Rob, Chris and James have built a remarkable business that has served the North East well over the past ten years.

“Now, with the support of Trust Tech Inc., it will be able to draw upon a significantly increased resource base to further its reach and serve new and existing clients better.”