Future Build Recruitment, a specialist UK-based white-collar recruitment company operating in the UK construction industry, is the first acquisition that Hercules has made since its foundation by Brusk Korkmaz in 2008.
Brighton-based Future Build will be integrated into Hercules' Labour Supply division and provide the company with exposure to the white-collar recruitment market.
Future Build currently has 14 employees, with plans to expand the workforce to 16 in January 2024.
AIM-listed Hercules is paying Future Build directors Simon Yates and Richard Smith £1,001,000 in cash and 994,431 Hercules shares for the business.
Under the terms of the deal, Yates and Smith can sell their remaining 40% to Hercules after five years; Hercules can exercise the full buyout after 10 years.
In 2022, Future Build generated revenues of £1.5m and produced profits before tax of £490,000. The assets subject to the acquisition had a net asset value of £379,574.
Hercules chief executive Brusk Korkmaz said: "The acquisition of Future Build represents a major milestone for Hercules as we continue to deliver on our strategy. When we floated on AIM in February 2022, we stated our intentions to grow organically and through acquisitions which broaden our capabilities, accelerate growth and enhance our core offerings. Having tested the market opportunity in white-collar recruitment through organic growth initiatives, this deal expands our footprint in the white-collar recruitment market by bringing a highly regarded business and team into the company.
"I believe that Future Build will prove to be an excellent addition to the company and that this move will be beneficial to both Hercules' and Future Build's clients who will now be able to fulfil both white-collar and blue-collar recruitment opportunities through the same provider. It also means that the Future Build team will benefit from more exposure to the infrastructure market, which is expected to grow substantially over the next 15 years."
Future Build directors Simon Yates and Richard Smith said: "We are delighted to be joining this ambitious company as it delivers its long-term growth strategy. By joining our two extensive client portfolios we will be able to provide both white-collar and blue-collar recruitment services, creating a significant platform for growth, exciting opportunities for our internal team and adding value to our combined customers and shareholders."
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