Trinity Mirror announces sale of hotgroup recruitment consultancy division

Trinity Mirror, the UK's largest newspaper publisher, announces today that it has agreed to sell the recruitment consultancy division of the hotgroup for £11.2m.

The consultancy division is being acquired by Ochre House Ltd, a company set up for the transaction that is backed by NBGI Private Equity and the division's existing management team, led by Chris Herrmannsen.

The division comprises several recruitment consultancies operating in the education, retail, leisure, commercial and legal staff placement industries.

Trinity Mirror acquired the hotgroup in October 2005, and is retaining its portfolio of industry-leading online job sites.

Sly Bailey, Chief Executive of Trinity Mirror, said: "This is a well-run business with a strong portfolio of recruitment consultancies, spanning a number of specialist industries.

"We made the decision to sell because the division is not a core part of our publishing portfolio, and the opportunities for development will be greater under the direct ownership of the management team.

"In line with our strategy of broadening and deepening our presence in key classified categories, we remain committed to strengthening and growing the online recruitment activities of the hotgroup."

NBGI Private Equity director Mark Owen said: "The division's proven track record, strength in its core markets and ambitious management team represent an excellent platform for future growth. We are very pleased to be involved in the next stage of the business's development, and look forward to working with the existing staff and management team to continue to grow the business over the coming years."

Chris Herrmannsen, Managing Director of the consultancy division and now Managing Director of Ochre House Ltd, said: "We are thrilled to complete this transaction and look forward to the next stage in our development. We plan to work together with NBGI to accelerate growth in the business through a number of targeted initiatives."

NBGI Private Equity specialises in investing in established small- to medium-sized "traditional economy" businesses across the UK, and is based in London. Other recent investments have included the management buy-outs of Superglass Insulation and Romac, a technical logistics company.  Last year, NBGI exited its successful investment in Walker Hamill, a financial recruitment consultancy.

NBGI Private Equity launched in 2000 with an initial €100m fund and is focused on traditional economy companies. It invests £2 million to £15 million of equity, principally into buy-outs and buy-ins but also development capital and turnarounds with transaction values of £5 to £50 million. Further details are available on www.nbgipe.co.uk.

The hotgroup's recruitment consultancy division includes International Teachers Network, which specialises in placing qualified overseas teachers into UK schools; Mark Education, which specialises in placing qualified teachers into local schools; Parkside Recruitment, which specialises in providing staff to the commercial and finance industries; The Buzz, which specialises in providing staff to the retail and leisure industries; ASA Legal, which specialises in providing staff to the legal industry; and Profiles Resource Management, which specialises in managing clients' recruitment processes. 

Trinity Mirror
Chris Wade on 020 7510 6609

NBGI Private Equity
Mark Owen on 020 7661 5642 or
Piers Hooper, Equus on 020 7223 1100
or James Sumpster