NBGI Private Equity has sold its majority stake in Ochre House Limited to US-based Pinstripe backed by Accel-KKR. The sale delivers a 4x return on NBGIPE’s original investment.
NBGI Private Equity (“NBGIPE”), the lower mid-market buyout firm, today announced that it has sold its majority stake in Ochre House Limited (“Ochre House”) to US-based Pinstripe, Inc. backed by Accel-KKR, which delivers a 4x return on NBGIPE’s original investment. The sale will result in the combined business becoming the largest independent provider of global recruitment process outsourcing (“RPO”) and talent management solutions.
Ochre House has rapidly grown to become the leading provider of talent management services in the UK, Continental Europe and the Middle East and represents a significant EMEA platform for the US buyer, Pinstripe. The EMEA market is estimated at approximately $967m and is expected to grow to over $1.4billion by 2016, with EMEA representing around one third of the global RPO market.
Belinda Berkeley, NBGI Private Equity’s Investor Director of Ochre House, comments:
“We are delighted to have worked with an exceptional and highly committed management team and played a role in building Ochre House into a leading multi-regional RPO player. It is credit to management that they kept the business focused on the high value strategic hiring demands of blue chip clients, a market which has continued to grow ahead of the broader recruitment market. This investment shows our commitment to investing in companies with compelling value propositions.”
The announcement comes at a time when the increasingly globalised nature of business means multinationals must have a coherent strategy for attracting and retaining talent as they operate and expand in different parts of the world. Ochre House and Pinstripe have been working in partnership since 2009 to provide global solutions, and the combination of the businesses is a response to increasing client demand for a single, dedicated provider of end-to-end talent solutions worldwide. The combined global presence will now include more than 750 employees, serving 88 clients in 40 countries around the world.
NBGIPE backed the 2006 buyout of Ochre House, with Chris Herrmannsen as CEO, which was then a group of six disparate recruitment businesses. The strategy was to grow those businesses using a shared central function and create value through a staged exit strategy. In 2011 the last of the non-core businesses were sold, allowing the management team to focus on the high value and fast growing talent management business. This growth was accelerated in early 2012 when NBGIPE invested further funds to support the acquisition of Taaheed and Carmichael Fisher in the Middle East – the two leading talent management businesses – to create a significant global RPO player.
With NBGIPE’s support, the Ochre House talent management business has expanded from a business of just 22 employees in 2006 to employing more than 240 at present and turnover has increased by a compound annual growth rate of over 100% p.a. from 2006 to present day.
Mark Owen, a Founding Director of NBGIPE, comments:
“We are pleased to deliver another strong return to our investors. Our investment in Ochre House validates our commercial approach, working with the management and capitalising on growth opportunities through making follow on acquisitions. This return emphasises why Business Services is one of our three target sectors for investment.”
“Pinstripe and Ochre House’s combined strength will become the new benchmark for global RPO and talent management services,” said Chris Herrmannsen, CEO of Ochre House. “We intend to further expand our footprint into emerging markets and provide our clients with a powerful, unified solution for navigating today’s increasingly competitive talent marketplace.”
Ochre House and Pinstripe’s success has been recognised industry-wide. Ochre House was recognised as one of the top four organisations with the most experience in multi-region RPO in the 2013 Everest Group PEAK report. Pinstripe was ranked as a “10 Best” RPO Provider by the Outsourcing Institute and was identified as a 2013 RPO Leader & Star Performer in the Everest Group PEAK Matrix. Both Ochre House and Pinstripe have been repeatedly ranked on HRO Today magazine’s “Baker’s Dozen” lists of top RPO providers.
For further information please contact:
NBGI Private Equity
+44 (0)20 7661 5678
Equus Communications (for NBGIPE)
Piers Hooper / Sam Barton
Sam.Barton@EquusGroup.co.uk +44 (0)207 223 1100
NOTES TO EDITORS
NBGI Private Equity (www.nbgipe.co.uk)
• NBGI Private Equity (“NBGIPE”) launched in June 2000 with a particular focus on investments in established businesses in the UK or Ireland widening more recently to France and Emerging Europe;
• NBGIPE typically invests in businesses of £5m to £50m in value. It invests in established businesses alongside strong management teams, supporting their business development plans and providing additional funding where needed for both organic growth and acquisitions.
• NBGIPE invests across a range of sectors, but has a clear focus on three specific industry sectors in which it boasts a strong track record of experience and success: support services, healthcare and food manufacturing;
• NBGIPE deploys its capital in a variety of investment structures including management buy-outs, management buy-ins, growth capital and turnarounds;
• In total NBGIPE manages a number of funds in the UK, Western Europe and Emerging Europe;
• The NBGIPE investment team is deliberately top heavy and most have managerial experience in industry prior to their extensive experience in private equity. Their approach is commercial, focusing on the key business issues to ensure a rapid response to investment opportunities and an efficient process through to completion. The company’s Investment Committee comprises its four executive directors, allowing it to deliver promptly on key decisions; and
• NBGIPE sees its role as a partnership with its investee companies, to back up and add to the judgment of management with its strength of resources, both human and financial.
NBGI Private Equity Limited is Authorised and Regulated by the Financial Conduct Authority.
About Ochre House
Drawing on more than 15 years’ experience, Ochre House is a major international player in recruitment outsourcing and the wider talent management field, with regional hubs in Europe, Asia and latterly the Middle East under the Carmichael Fisher & Taaheed brands. Named by top outsourcing analysts, NelsonHall, as one of the world’s leading providers of full end-to-end recruitment process outsourcing, Ochre House focuses on all key aspects of the talent pipeline – engagement, development and retention to deliver Total Workforce Management. More information on Ochre House is available at www.ochrehouse.com.