TMP

Transaction Background

In May 2006 Graphite Capital led the management buy-out of TMP Worldwide from its US parent company. TMP is the UK’s largest recruitment advertising agency with almost 300 staff in 8 offices throughout the UK and Ireland. In addition to recruitment advertising, the business also provides response management, candidate assessment and graduate communications services.

Deal Attractions

Graphite backed a highly experienced and well established management team. The business has long-standing relationships with a broad variety of customers, including FTSE 100 companies, local councils and central government agencies. TMP is recognised as an innovative leader in online advertising, the fastest growing element of the recruitment market. With TMP’s original parent company concentrating on its Monster recruitment business, the buy-out enables TMP to realise its potential across its full range of online and offline services and solutions.

Achievements

the management team has been strengthened with the appointment of a new Finance Director and Human Resources Director
significant investments have been made to relocate TMP's headquarters to a newly developed, single occupancy site and to upgrade systems and facilities to increase productivity and improve client service
improved working capital management and an increase in free cash flow allowed the business to undertake a re-financing in March 2007, enabling the partial repayment of loan notes
following several years of decline before the buy-out, in Graphite’s first full year of ownership turnover increased on the back of 55% growth in the online business
greater pricing discipline and tight cost control has delivered robust financial performace since the buy-out