London-based investment holding company MBH Corporation has acquired Logistica Training, a training provider serving the health and social care sector, for £5.8 million.

The deal is MBH’s 11th in the education sector and will expand its portfolio, which includes Acacia Training and the Parenta Group.

Logistica Training, which was established in 2012 as a vocational training business, last year recorded earnings before interest and tax of £800,000 against £1.9 million of revenue – meaning a price-to-earnings multiple of just over seven will be paid for the firm.

The transaction comes at a difficult time for the UK training and apprenticeship market, which has been hampered by the coronavirus crisis as government-enforced lockdown measures forced brick-and-mortar training centres to close indefinitely in March. The sale of another business in the sector, Lifetime Training, was cancelled last month after the number of apprenticeship starts dropped off a cliff due to Covid-19.

Training provided by Logistica Training, however, is “fully funded by the EU”, according to MBH, which added that the firm recently started to deliver online training to workers in sectors unrelated to health and social care.

MBH highlighted synergies between Logistica and other training companies in its portfolio.

“Logistica Training is a strong addition to MBH, supporting synergies in the education vertical with other businesses in the group, and widening our UK reach in regulated qualification delivery in health and social care,” said Victoria Sylvester, managing director of Acacia Training. “Logistica Training holds contracts similar to other members of MBH which cover additional regions in the UK and by sharing knowledge, expertise and experience between the companies will support continued group growth.”

MBH said it had launched a €50 million bond programme, a portion of which will be used to fund its purchase of Logistica Training.

The firm is reportedly targeting between five and 10 acquisitions this year. 

Date published: 11 June 2020

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