Multi-sector Birmingham-based recruitment group Capital Outsourcing has acquired Yorkshire rival Qualtech Resourcing in a £7m deal as it eyes growth outside its Midlands heartland.

The acquisition, completed with support from a £2.4m funding deal with bank HSBC, adds 31 new clients to Capital Outsourcing’s books.

Capital Outsourcing says expansion is expected to add £10m to its annual turnover.

Owner Richard Sobol said in a statement: “Qualtech Resourcing very much mirrors what we do here at Capital; they were an ideal fit for us as we look to expand.

“This acquisition will enable us to firmly establish our Northern offering and provide seamless entry into new markets, which have the potential to provide future growth opportunities.”

All Qualtech staff remain in post. The Qualtech brand name also remains.

Birmingham-based accountancy practice Michael Dufty Partnership provided the lead advisory role for the acquisition and assisted in preparing the funding package for presentation to HSBC.

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