NBGI achieves 4x return on Ochre House exit

Ochre House and US-based recruitment process outsourcing (RPO) business Pinstripe formed a partnership in 2009 to provide global recruitment services in reaction to industry demands for a more international approach. The company's affiliation with Pinstripe was developed through Ochre House CEO Chris Herrmannsen's network in the RPO industry.

According to Belinda Berkeley, NBGI investment director, the firm had planned to speak to a small number of strategic buyers. However, the value of the relationship between Ochre House and Pinstripe put the US business at the forefront of the sale process.

The sale to Pinstripe saw the Ochre House management team re-investing a significant amount in the newly formed group.

Following the deal, the newly combined business will have more than 750 staff serving 88 clients in 40 countries around the world.

Previous funding
NBGI acquired recruitment consultancy business Ochre House for £11.2m from UK newspaper publisher Trinity Mirror in August 2006. At the time of acquisition the company was a group of six separate businesses with more than 100 consultants operating out of 17 offices nationwide, with an established overseas sourcing capability in Australia, New Zealand, South Africa, Canada and Ireland. In 2005, the business had turnover of £36m with EBITDA of £1.6m on a stand-alone basis.

NBGI's investment strategy was to rationalise the group by selling off divisions and concentrating on the talent management business.

NBGI sold two subsidiaries on separate occasions. ITN Mark Education was sold in May 2011, fetching £13m, and Parkside Recruitment was sold to Antal International in July 2011. Both of these deals contribute to the overall 4x return on NBGI's initial investment. Following these disposals, Ochre House management was able to focus on developing the company's talent management business.

NBGI supported Ochre House's acquisition of Dubai-based strategic resourcing firms Taaheed and Carmichael Fisher in February 2012.

Company
Ochre House specialises in recruitment outsourcing and talent management. It operates through regional hubs in Europe, Asia and in the Middle East through its Carmichael Fisher and Taaheed brands.

People
Belinda Berkeley led the deal for NBGI. Chris Herrmannsen is CEO of Ochre House.

Advisers
Vendors - Olswang, Duncan McDonald (Legal); Lincoln International, Edward Lethbridge, Michael Iannelli (Corporate finance).

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