Staffing firm Staffline Group has acquired office and admin recruiter Select Appointments from recruitment group Randstad.

Staffline chief executive Andy Hogarth says the move comes “as we seek to further broaden our operational reach”. He adds: “Not only is the Select brand instantly recognisable but its established franchise network will provide a stable footing for the group as we seek to expand our services into the white collar staffing market.”

The acquisition includes Select Hospitality and industrial, warehousing and technical brand Parkhouse. All segments of the group will continue to trade under existing brand names.

A spokesperson for Randstad comments to Recruiter: “The timing of the transaction has been purely led by Staffline’s interest in the Select business. In terms of Randstad’s operation in areas that Select is focussed on, there has always been some small overlap. However, Randstad’s recruitment portfolio is far broader than hospitality, staffing, warehouse and industrial, which Select and Parkhouse operate in. The strategy of Randstad in the UK is to provide not only staffing recruitment requirements but also a focus on professionals such as highly-qualified accountants, IT and engineering professionals.”

Select has 31 franchise offices across the UK and Staffline hopes to triple this number over the next three years. Staffline also says that the purchase “will be earnings neutral in the first full year of ownership and earnings enhancing thereafter”. Select made a profit of £458,000 in 2011, following a loss of £1.83m for 2010, according to Companies House – although it posted an operating loss of £382,000 in 2011, but this was recuperated with £992,000 of ‘interest receivable from group companies’.

Meanwhile, Staffline has acquired Go New Recruitment and DKM Driving in the past two months, and made an operating profit before amortisation of £3.8m in the first half of 2012, the same as last year’s figure, with revenues rising 36% in the same period.

Mark Kingston, senior executive at M&A advisory house Boxington Corporate Finance, tells Recruiter: “Staffline is one of a growing number of UK and international blue collar recruiters who are moving into low level professional staffing markets to improve their NFI [net fee income] mix and margin. The strategic nature of these deals enables this group of buyers to offer competitive deal valuations and terms.”

Hogarth adds: “Today’s announcement is a natural evolution for our business as we aim to replicate our success in the blue collar recruitment market. Our recent expansion into the Welfare to Work arena coupled with today’s announcement is a clear indication of our ambitions to grow the business and continue to enhance shareholder value.”