North East Connected

MTrec becomes the first UK acquisition for Japanese-listed Trust Tech Inc

The Ryecroft Glenton Corporate Finance Team, from left to right, Peter Glenton, Alex Simpson, Carl Swansbury, Charlotte Burton and Simon Hopwood
The Ryecroft Glenton Corporate Finance Team, from left to right, Peter Glenton, Alex Simpson, Carl Swansbury, Charlotte Burton and Simon Hopwood

The acquisition will mark Trust Tech Inc.’s first significant acquisition outside of Japan, following a recent acquisition in Hong Kong, and will help the company establish a presence in the UK and European markets. The acquisition is expected to complete on the 30th August.

Established in 2006, MTrec Ltd is one of the North East’s leading staffing and training providers, serving the manufacturing, engineering and industrial sectors. Its wholly owned subsidiary, MTrec Care Limited, provides Nurses, Carers and Support Workers to the North-East’s care sector.

Employing 56 staff and with a cohort of 2,500 temporary workers placed into clients’ businesses across the region, MTrec Ltd has enjoyed exceptional growth since inception with an average year-on-year turnover growth of around 23 percent. During the financial year ended 31 March 2016, the business delivered turnover of £46m.

With offices throughout the North East, the business was founded by directors David Musgrave and Rob Armstrong and works with blue chip clients across industries including aerospace, automotive and Fast Moving Consumer Goods (FMCG).

David Musgrave will remain as Managing Director and, alongside the existing management team, including James Doyle and Chris Salkeld, will work with Trust Tech Inc. to develop the business over the coming years to become a leading national and European staffing and training provider.

Trust Tech Inc. is a leading Japan-based staffing business specialising in the provision of dispatching, outsourcing and sub-contracting staffing solutions. The company is currently executing a growth strategy, emphasising both organic growth and aggressive acquisition.

Advising on the sale, on behalf of the directors of MTrec Ltd, is Carl Swansbury, partner at Ryecroft Glenton Corporate Finance, supported by Alex Simpson, Simon Hopwood and Charlie Burton. Legal advice is being provided by Duncan Reid and Kirsty Adamson of national law firm, Watson Burton.

Trust Tech Inc. is being advised by Corporate Finance Advisors, Philip Ellis of Optima Corporate Finance working in partnership with Yoshiharu Ohi, CEO of Global Business Consulting Corporation in Japan. Financial due diligence was carried out by Grant Thornton led by Dan Rosinke. Legal advice is being provided by Osborne Clarke’s Matthew Bodfield and Kevin Barrow.

Yutaka Nishida, President and Representative Director of Trust Tech Inc., said: “It is our highest delight to welcome MTrec to our group. Focusing on manufacturing and engineering sectors, both Trust Tech and MTrec are fast-growing and enthusiastic companies. We are covering different geographic areas of the world, and can jointly grow faster.”

David Musgrave, Managing Director of MTrec Ltd, said: “Becoming Trust Tech Inc.’s first European strategic partner is testament to the quality of the business and the strong growth we have achieved.   It is a fantastic opportunity for MTrec and its current management team to take the business into new markets and to enable the business to deliver global staffing and training solutions to our existing and prospective clients.”

Carl Swansbury, partner at Ryecroft Glenton Corporate Finance, said: “This is a very positive transaction for the North East, and demonstrates the high levels of interest overseas companies have in acquiring fast-growth, profitable, well-run UK based businesses. MTrec Ltd has established a very successful operation in the NE serving clients in a variety of industries with ever changing temporary and permanent workforce and training requirements. The existing management team are very much looking forward to working alongside Trust Tech to grow the business over the coming years by moving into new adjacent sectors and geographical markets.”

Duncan Reid, partner and national head of corporate at Watson Burton, said: “We’re delighted to have brought our expertise in managing high level acquisitions to bear for MTrec Ltd and to have helped the firm move into a new era. MTrec Ltd is a true North East success story, with a customer base that already features many global operators – it’s therefore no surprise that Trust Tech Inc. chose the firm as its first European strategic partner.

“The deal also demonstrates that post-referendum result, overseas companies are still interested in exciting new opportunities in the UK market – and that they are prepared to back up that interest with acquisitions of a significant scale.”

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