Empresaria buys majority share of Grupo Solimano

International specialist staffing group Empresaria announced the acquisition of a 60% interest in Grupo Solimano on Tuesday, which it described as an established provider of outsourced and temporary staffing services in Peru.

The AIM-traded firm said the strategic investment strengthened its presence in the Latin American market, alongside existing operations in Chile and Mexico.

It said the total consideration was expected to be around £2.1m, comprising an initial cash payment of £1.35m, a deferred payment of approximately £0.55m due to be paid by September, and a contingent amount of £0.2m dependent on the final results for the year ended 31 December.

In the year ended 31 December, Grupo Solimano generated revenue of £14.9m.

The board said the investment was being funded by its operating cash flows, and was expected to be neutral from an earnings perspective in the current financial year ending 31 December and earnings-enhancing in the next financial year.

In line with the group's management equity business model, the managing director of Grupo Solimano, Rocco Solimano, would retain a 40% interest in the business and continue to manage it going forward.

Empresaria described Rocco Solimano as “highly respected” in the industry, and was the current chairman of the board of the Peruvian Association of Good Employers and a director of the Association of Outsourcing and Temporary Employment Companies.

“This investment is an important part of our strategy to maintain our global diversification, develop our presence in the high-potential Latin American market and is in line with our focus on temporary and contract recruitment,” said Empresaria chief executive officer Spencer Wreford.

“We are delighted that Grupo Solimano has joined the group and we look forward to working with them to develop their business within Empresaria.”