Inflexion leads £24m recruitment buyout

Inflexion Private Equity, a UK mid-market private equity firm, has backed a £24 million (€35.7 million; $44.7 million) management buyout of Parasol, an employment services company.

Inflexion invested £9.4 million to acquire a majority stake in Parasol, with a £12 million debt package provided by HSBC and the balance from management. According to Inflexion, the deal was sourced off market and negotiated directly with shareholders, who were advised by Ballard Campbell.

John Hartz, managing partner of Inflexion, and assistant director Andrew Mainwaring have joined Parasol’s board of directors as part of the transaction.

Based in Warrington, Parasol is an employment services company for contractors and recruitment agencies in the IT, engineering, medical and education sectors.

Inflexion is currently investing from its €150 million 2003 Buyout Fund, which has made eight previous investments, including IT resourcing specialist Red Commerce and support services business ACIS.