AWF to pay up to $3.5 mln for Tradeforce NZ recruitment agency
AWF Group, formerly known as Allied Work Force, will pay up to $3.5 million to buy recruitment agency Tradeforce NZ as it continues to grow by buying its rivals.
The contract labour company will pay ASX-listed Skilled Group $3.2 million upon completion of the sale, with a further earn-out payment of up to $300,000 if revenue targets are met.
AWF said it expects the acquisition will lift revenue by as much as 15 percent and add to profits from 2013.
AWF had $4.6 million in cash reserves as at Sept. 30, according to its first-half financial statements.
“The acquisition of this well respected business will enhance AWF’s leading position as a provider to this sector,” chief executive Mike Huddleston said in a statement.
“AWF will retain and develop the Tradeforce brand by continuing to deliver exceptional service.”
The Tradeforce purchase is AWF’s third in the past 15 months, after it bought health sector labour specialist Panacea Healthcare and Waihi-based mining labour specialist AWF Mourant last year.
Tradeforce operates in Auckland and Waikato, offering temporary staff to manufacturing, warehousing, food processing and logistics in the region.
AWF shares were unchanged at $1.90 in trading today, and have climbed 40 percent this year.
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