CPL snaps up distressed rivals' assets in safety and outsourcing
Friday July 17 2009
CPL Resources, the Dublin-quoted recruitment group, yesterday cemented its reputation for capitalising on rivals' problems as it snapped up two further units of Newcourt, the collapsed business support services provider.
The group, headed by Anne Heraty, has bought Loss Control Services, trading as Nifast, and Ecom Interaction services from Newcourt's receiver, David Carson, of Deloitte.
Nifast is one of Ireland's leading health, safety and risk management consultants, while Ecom specialises in providing customer care services, outsourced insurance administration and back-office services.
"These acquisitions will help secure the positions of employees of both businesses and will extend the collective capabilities of the Cpl Group," CPL said in a statement.
CPL plucked Cork-based recruitment firm Kenny Whelan & Associates out of Newcourt's receivership process last month.
Opportunistic
Ms Heraty was similarly opportunistic in 2002 when Marlborough went into receivership, before pouncing on its Anne O'Brien office temping business.
Analysts said the latest deal highlights the businesswoman's ability to pick up good assets at distressed valuations. However, financial details of the transactions were not disclosed.
Last week, CPL warned in a trading update that the outlook for the group remains uncertain for the remainder of this year as unemployment figures rise in a contracting economy.
"It is impossible to predict with any accuracy whether the markets in which the group operates will experience any significant improvement in the foreseeable future," its said.
The company has been cutting costs and adjusting its business model to respond to new market conditions. And despite the difficult circumstances, the group remained profitable for the year ended June last.
CPL said that its profits would be in line with market expectations. Its own broker, Davy, has pencilled in €7.7m of pre-tax profit for the firm for the 12 months to June, down from €20.7m for the previous year.
- Joe Brennan
