Mills & Reeve advises on education deal

The acquisition is to be funded from existing cash resources and debt facilities and the initial consideration is £1.2 million. 

In addition, Servoca, which has an office in Leeds, will pay deferred consideration of up to £1.9 million, subject to Classic Education meeting certain profit targets for the two years following acquisition. 

Paul Johnson, corporate partner in our Leeds office, advised Servoca, which is headquartered in London, on the deal. 

It is the second acquisition Paul has worked with the company on in the last 12 months. In September he advised Servoca on the acquisition of Hampshire-based A+ Teachers Limited. 

Kent-based Classic Education has been established for 11 years and holds a strong reputation for the delivery of quality Education Recruitment services into its local markets. 

The board of Servoca expect the acquisition to be earnings enhancing in the year to 30 September 2017 with minimal impact in the current year. Classic Education is a bolt-on to the Education Recruitment business in a geographic area with high levels of demand but where Servoca does not currently hold a local presence. 

Andy Church, chief executive officer of Servoca, said: “We are delighted that Classic Education is now part of Servoca. This acquisition complements our existing branch network in education and gives us a local presence in the Kent and South London market, an area with significant demand for education recruitment services. 

“The acquisition of a long-established local provider in this area increases our national branch network coverage. In total we now have 15 UK locations and one overseas office from which we service local schools. We look forward to working with the staff and management that have helped build the business into one of the leading providers in the area.” 

Paul said: “We are pleased to advise long-standing client Servoca on its latest deal as the company looks to further expand its geographical presence in the South East.”