Acquisitive recruitment concern Multi has made its fourth and largest purchase since the reversal of medical specialist Berry Recruitment into the shell in March.
 
The company, backed by Bob Morton’s Southwind investment vehicle, will pay out a maximum of £13.7 million to acquire Global Medics, which specialises in providing locum doctors and contracted consultants to both NHS and private hospitals.
 
Global Medics was founded three years ago in the UK, by 27-year-old Justyn Randall. The company has an office in South Africa, which provides many of the doctors it places in hospitals throughout the UK. In the year to May pre-tax profits rose 18.2 per cent to £1.3 million on revenue up 12 per cent
to £9.3 million.
 
Existing Global Medics’ shareholders will receive £9.6 million initially, with the remaining £4.1 million coming if certain targets are met in the current financial year to May.
 
Multi raised £1.5 million via a placing last Friday at 1.5p a share. Southwind subscribed for half of these shares and consequently now has a 53 per cent stake in the group. The remainder of the cash part of the transaction will come from existing resources and £7 million of recently arranged debt facilities.
 
Chairman Oliver Cooke said: ‘This is the next step in the 'buy and build' strategy. We began 2005 as a cash shell and will now enter 2006 as a substantial group focused on the medical and care sectors where expenditure on temporary staffing remains high and is anticipated to grow.’
 
The group was distracted for much of the year by a potential offer for listed IT recruitment concern Lorien, which was eventually aborted. The latest deal allows the group to focus on building its medical specialist business. The takeover will complete following an EGM on 23 January.
 
The shares, recommended by Growth Company Investor in March, currently stand at a 52-week low of 1.88p, valuing Multi at a lowly £6.1 million.

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