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North East advisers drive through Solutions Recruitment fund raising and refinancing deal

Solutions Recruitment, one of the UK’s fastest growing staffing groups, brought together a top team of corporate finance advisers and funders from the North East to help advise on and deliver its recent fund raising and refinancing deal.

Solutions Recruitment, which includes brands such as Solutions, Ship2shore, Redesdale and Lavoro, was acquired through a management buyout three and a half years ago by current owners Lee Andrews, Michael Grayson and Ian O’Brien. The group has ambitious plans to grow its offering and presence across the region and UK over the coming months, and will be moving from its current leasehold premises on Hood Street to its newly acquired corporate HQ, Yorkshire Chambers, Pilgrim Street in Newcastle in the coming weeks to allow for future expansion.

Corporate finance, fund raising and business planning advice to Solutions Recruitment were provided by Ryecroft Glenton Corporate Finance.

Working capital and day to day banking facilities have been provided by Barclays Bank plc. FW Capital provided the development capital to underpin the expansion from the North East Growth Plus Fund.  BHP Law advised the shareholders of Solutions and Watson Burton LLP acted for FW Capital.

Solutions Recruitment has been established for 29 years. Its blue chip client base includes companies such as Greggs and Paradise Foods. The firm prides itself on its client-focussed personal approach, which has seen it grow significantly in the last two years. Solutions now employs 35 people and intends to continue to grow organically, whilst also considering strategic acquisitions.

Carl Swansbury, director of Ryecroft Glenton Corporate Finance who led the transaction, said: “We’ve worked very closely with the shareholders of Solutions Recruitment over the past six months to help clarify their three year business plan and to identify the level of working and development capital needed to deliver the business plan.

“We approached a number of possible funding partners, including five banks and two private equity firms prior to agreeing a fit for purpose funding structure. We managed the refinancing and fund raising through to completion, along with the property purchase, all within a couple of months. There were a lot of plates to spin simultaneously, but we’re delighted with the result.”

“Now that the fund raising and refinancing project is complete, along with the acquisition of Yorkshire Chambers, we expect to see Solutions Recruitment continue the growth that the business has achieved during the past few years. The company has real growth potential and we are pleased to have been involved in helping them deliver such an important part of their business plan.”

Like any transaction, the structuring of this deal involved a number of challenges. Aaron Clark of Barclays Bank said: “We’re pleased to have been able to help Solutions Recruitment raise the finance needed to acquire Yorkshire Chambers and to secure a working capital facility that will enable the business to deliver its ambitious business plan. It was a pleasure to work alongside the shareholders and RGCF on this transaction and I look forward to working with the shareholders of Solutions over the coming years.”

FW Capital Investment Executive, Rob Jones said: “Solutions Recruitment has grown rapidly since the current management team bought out the business three and a half years ago.  The team are now ambitious for further growth and they’ve adopted a focused and pragmatic approach to secure the funding they need.  We’re pleased to have worked with them, their advisers and Barclays to come up with this well-structured funding package.  FW Capital’s six-figure mezzanine investment from the North East Growth Plus Fund provides them with the expansion capital to put their plans into action.”

Lee Andrews, managing director and shareholder of Solutions Recruitment said: “Given the number of parties involved in this transaction, along with their advisers, we knew that we would need an experienced team of advisors to assist us at this pivotal point in the company’s history. Ryecroft Glenton Corporate Finance’s skilled team, headed by Carl Swansbury, was fully committed to bringing about a successful completion and were extremely proactive in delivering each aspect of the transaction. We are delighted with the results and will be moving into our new premises in the next couple of months, from where we can deliver our growth plans.”

North East Growth Plus Fund