Work Group plc acquires RCC HR

Work Group plc, the AIM-listed recruitment services group, has acquired RCC HR, a regional provider of recruitment communications services based in Knutsford, Cheshire.

Work Group is paying up to 4.4m for RCC HR, which was established in 2002 by Beverly West and Derek Wynne, both of whom will remain with the enlarged Work Group. RCC HRís clients include Boots, Bentley Motors and Allied Bakeries.

Work Group has offices in Manchester, Birmingham and Edinburgh but has traditionally run all its creative and support services from its London base. However, this acquisition will now shift that London-only focus to provide Work Group with a substantial business base in the North West. It is expected that RCC HR and Work will continue to operate as separate brands for the next 12 months. RCC HR is Work Groupís second acquisition in the North West area. In October last year, it bought Armstrong Craven, Europeís leading executive research agency, which has offices in London and Manchester.

Simon Howard, Chairman, Work Group, said:

ìWe are very impressed with RCC HRís range of services. This is not just a run-of-the-mill recruitment communications business - we have great admiration for the breadth of RCC HRís capability and the depth of their client relationships. Put that together with Work Group, and you have a very powerful national force, well-equipped for the future.

ìThe combination of Work Groupís Manchester team, Work Groupís Manchester-based Armstrong Craven business and RCC HR means that we now have more people in the North than we do in London. We have a real opportunity to build a substantial North West hub.î

ìWe have been particularly impressed by the similarity between RCC HRís model and our own, with its income also split 50/50 between advertising and fees. Our client bases are complimentary, particularly as over two-thirds of the RCC HR client base is in the commercial sector.î

Beverley West, co-founder of RCC HR, said:

ìWe are very proud of what we have created at RCC HR in such a short space of time and have not taken this decision lightly. Quite simply, the opportunity to join Work Group is a fantastic one. We have admired Work Group and its people for some time and are attracted by the obvious synergies between our two businesses.î

Derek Wynne, the other co-founder of RCC HR, said:

ìJoining Work Group allows us to build our offering in employment and internal communications both across a wider network and with the support and infrastructure of a plc business. Strong economic performance in the regions, and an increasing number of businesses choosing to locate outside of London, mean the opportunity for growth will be significant.î

RCC HR was advised by solicitors, Mace and Jones, and accountants, PKF, on the transaction.