Brabners Chaffe Street Solicitors - Corporate Services

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Kinetic Technical Limited Deal
8/01/2009

Deals report - Kinetic Technical Limited

Pannone LLP and PKF Corporate Finance have acted for Neil McCarthy and his new company, Kin-Tec Holdings Limited on its management buy out of Trafford Park based specialist oil and gas industries recruitment consultancy, Kinetic Technical Limited. The deal, completed for an undisclosed sum, was funded by The Royal Bank of Scotland ("RBS"). Brabners Chaffe Street acted as advisors to Kinetic plc.

The MBO was led by Neil McCarthy the company`s Managing Director. Neil acquired the business from parent company Kinetic plc, seven years after he joined Kinetic to launch a specialist technical division.

Kinetic Technical specialises in recruiting skilled technical personnel for clients in the oil & gas, pharmaceutical, chemical and energy industries worldwide. Candidates are provided on both a technical and permanent basis and typically include mechanical and process engineers, project managers and system validation engineers.

Under Neil`s guidance Kinetic Technical has grown into a £20m turnover operation and employs 21 people. Its client base includes many of the largest names in the market such as Maersk, Shell, Amec and GlaxoSmithKline.

Neil McCarthy, Managing Director of Kinetic Technical said, "It`s a really exciting time for both businesses. The deal allows Kinetic plc to focus on its core markets, including rail, manufacturing and engineering temporary, contract and permanent personnel recruitment, while enabling us to specialise in the oil, gas and related energy sectors. We`re particularly keen to expand our fast growing business in the renewable energy sector, offering highly specialised staff to this fast-growing industry. We plan to build upon these strong foundations. Demand for skilled workers in the energy production markets remains strong and we are keen to expand our presence in all sectors."

Commenting for Pannone, Corporate Partner, Philip Treanor said, "Given current liquidity issues in the market and the general economic outlook, this has been a complex transaction to deal with. The North West has a number of very strong companies in this sector and Kin-Tec will boost the market even further. I am certain Neil McCarthy will be successful in taking Kin-Tec forward."

Philip Treanor`s comments were endorsed by David Smith of PKF, who said, "We`re pleased to have brought this transaction to fruition, despite the recent fluctuations in oil prices, seizing up of the banking system and economic downturn. It`s a tribute to all concerned that the deal completed with minimal disruption to either business."

Mark Brandwood at Brabners Chaffe Street said "Kinetic plc`s ongoing success has provided a strong foundation for the Kin-Tec team to build on. An excellent success story in tough times."

Marc Shirman, Director at RBS, said "Neil has considerable industry knowledge having established the business and presided over its rapid growth. Under his ownership I expect Kinetic Technical to continue to perform strongly and look forward to watching the company`s progress."

Pannone`s advisory team was led by Philip Treanor, who was assisted on corporate matters by Mark Winthorpe. Rob Fawke, Partner, advised on Banking, Jack Harrington, Partner, advised on employment issues, Stephen Roper, Partner, on commercial matters and Samantha Livesey, Partner on intellectual property. Advisors for PKF Corporate Finance were David Smith and David Thomson. Marc Shirman led the RBS structured debt and invoice finance team. Kinetic PLC`s advisory team was led by Mark Brandwood at Brabners Chaffe Street assisted by Mark Traynor and Charlotte Round. Hurst acted as accountants for Kinetic plc.

ENDS


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