Cpl Resources buys most of NHS contractor RIG

Irish employment services group Cpl Resources announced on Tuesday that it agreed to acquire 91% of RIG Healthcare Group, a specialist healthcare recruiter in the UK.

The AIM-traded firm said the acquisition was for a cash consideration of £8.1m.

RIG Healthcare Group, the trading name of RIG Locums and RIG Medical Recruit, was described by Cpl as a UK specialist healthcare recruiter with a focus on market niches within the locum doctors and allied health professions, and has a geographic footprint of five offices across the UK.

In the year to 31 December 2016, RIG Healthcare Group generated sales of £53.5m and normalised EBITDA of £2.0m.

Cpl said it expected the investment to be earnings-enhancing from the date of completion.

The company said RIG supplies qualified medical professionals to the UK's National Health Service, with a particular focus on radiography, occupational therapy, pharmacy and physiotherapy.

Healthcare recruitment, staffing and training had long been one of Cpl's most important sectors in Ireland and the UK, the board said, and RIG would complement the company's existing portfolio of healthcare brands which included Cpl Healthcare, Kate Cowhig International Healthcare Recruitment, Servisource Healthcare and Private Homecare.

The acquisition was Cpl's entry to the locum doctor market and would reportedly enhance the company's operating presence in the UK, following the acquisition of Clinical Professionals in September 2015.

Cpl confirmed the existing management team of Affi Khan and Rob Bryan would remain with the business and were co-investing in RIG as part of the transaction.

Khan, currently the managing director of RIG, would assume the role of CEO of RIG.

Bryan had been appointed to the role of managing director.

“We are very pleased to expand our presence in the UK and welcome the highly talented professionals from RIG to Cpl,” said Cpl CEO Anne Heraty.

“The recruitment expertise and international talent pool of doctors and healthcare professionals provided by RIG brings immediate strategic value to Cpl's broad portfolio of innovative workforce solutions in the healthcare sector.

“This acquisition also allows us enter into doctor recruitment which will deliver real value for our clients.”