Endless in £25m Capita recruitment arm carve-out

The carve-out is valued at £25m, sources close to the deal told Sky News.

The deal is the 11th transaction for Endless's £525m Fund IV, which was launched on March 2014 with a £400m target, closing nine months later. Its portfolio companies are mostly UK-based, and in 2017 it has also acquired Jones the Bootmaker and Arran Aromatics.

Capita announced in its 2016 annual report that following unsolicited approaches, it had started a process to dispose of its recruitment business. It said the sale would allow Capita to focus more on its provision of technology-enabled business process and customer management services. A sale would also strengthen the balance sheet, it said.

Endless will support the management team led by CEO Nicola McQueen.

Company
Affinity Workforce had sales of £140m in 2016, and mainly recruits for the public sector in education, healthcare and social care. The business comprises the Monarch, CER and Quality Teachers brands within its education division, 4Front and Team24 within its healthcare division and Medicare First within its social care division. Founded in 1992, it currently employs around 450 people.

People
Affinity Workforce – Nicola McQueen (CEO).
Endless – Francesco Santinon (partner); Ed Ransome (investment director); David Isaacs (associate director).

Advisers
Equity – Reed Smith (legal); PWC Tax (tax).
Vendor – DWF (legal); Grant Thornton (corporate finance).

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