Reading: PwC advises MBO of ERN

PricewaterhouseCoopers LLP (PwC) was delighted to be involved in the recent management buyout of European Recruitment Network Group (ERN), a £50 million recruitment group specialising in healthcare and professional and technical temporary staff, by Redwood Group.

PwC’s Business Recovery Services practice in the Thames Valley assisted the shareholders of ERN in structuring an offer for the business and raising finance to fund the purchase and ongoing trading.

The management buyout was backed by GMAC Commercial Finance, a company providing financing solutions to small, middle-market companies and large corporations. The group provided a £5 million confidential invoice discounting facility to complete the transaction, repaying in full the balance due to ERN's bank and providing working capital for the new group.

The shareholders successfully purchased the group's businesses through a combination of share and business and asset deals, enabling the business to continue while retaining their necessary registrations and preferred supplier agreements.

David Bennett, head of business recovery services in the Thames Valley, PricewaterhouseCoopers LLP, said: “We were delighted to be able to assist ERN and Redwood and help achieve the best possible outcome for all the stakeholders. In this instance, we were able to provide the complete package for our client. In a parallel process, we negotiated and completed the acquisition while at the same time raising the capital required to fund the buyout.”