Hercules Site Services, a technology-enabled labour supply company for the UK infrastructure sector, announced that it has acquired 60% of Future Build Recruitment Ltd, a specialist UK-based white-collar recruitment company operating in the UK construction sector.

The price for the acquisition was for a total consideration of £1,251,000. Under the terms of the agreement, the vendors can sell their remaining 40% minority interest to Hercules between the 5th and 10th anniversary of completion, at a consideration based on a multiple of 5.5x the average EBITDA achieved by Future Build in the two years preceding the minority interest sale.

The transaction is the first acquisition in Hercules' history, which will see Future Build integrating into Hercules' Labour Supply division. It will also expand Hercules' exposure to the white-collar and permanent recruitment market within the construction industry.

Brighton-based Future Build provides the company with an established presence in Southeast England, a region with good growth prospects for the infrastructure and construction sectors. Future Build focuses on permanent recruitment for main contractors, house building, high-end residential, social housing, and specialist sub-contractor sectors. Future Build currently has 14 employees, with plans to expand the workforce to 16 in January 2024.

In the year ending 31 December 2022, Future Build generated revenues of £1,504,944 and produced profits before tax of £490,258. The assets subject to the acquisition had a net value of £379,574.

Hercules' management team expects synergies of the acquisition to include cross-selling across white and blue-collar recruitment, the sharing of digital recruitment tools and a stronger focus on permanent placement recruitment.

Brusk Korkmaz, Chief Executive of Hercules, said, "The acquisition of Future Build represents a major milestone for Hercules as we continue to deliver on our strategy. When we floated on AIM in February 2022, we stated our intentions to grow organically and through acquisitions which broaden our capabilities, accelerate growth and enhance our core offerings. Having tested the market opportunity in white-collar recruitment through organic growth initiatives, this deal expands our footprint in the white-collar recruitment market by bringing a highly regarded business and team into the company.”

Korkmaz continued, “I believe that Future Build will prove to be an excellent addition to the Company and that this move will be beneficial to both Hercules' and Future Build's clients who will now be able to fulfil both white-collar and blue-collar recruitment opportunities through the same provider. It also means that the Future Build team will benefit from more exposure to the infrastructure market, which is expected to grow substantially over the next 15 years.”

Simon Yates and Richard Smith, Future Build Directors, said in a joint statement, “We are delighted to be joining this ambitious company as it delivers its long-term growth strategy. By joining our two extensive client portfolios we will be able to provide both white-collar and blue-collar recruitment services, creating a significant platform for growth, exciting opportunities for our internal team and adding value to our combined customers and shareholders.”