Sharechat Logo

AWF to pay up to $3.5 mln for Tradeforce NZ recruitment agency

Wednesday 30th November 2011

Text too small?

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.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

AWF founder Hull sells $7.25M stake at 7.9% discount to boost liquidity
AWF more than doubles profit on Panacea sale, will pay special dividend
AWF posts jump in sales, earnings, points to signs of Christchurch rebound
AWF Group expects strong annual profit growth
AWF to buy back shares in preparation for incentive scheme
AWF buys South Island nursing home help service
AWF blames RWC for shortfall in profit growth, shares gain
AWF Group forecasts profit rise
Allied Work Force set to buy Panacea Healthcare
Allied Work Force bounces back as employment growth returns