Japanese firm invests £1.71m in North East jobs

Japanese firm invests £1.71m in North East jobs

North East staffing and training firm MTrec Ltd has been purchased by Japanese firm Trust Tech Inc in a £17.1m deal that will create hundreds of jobs in the region.

The Japanese firm announced its plans to invest in the North East last month, and completed the acquisition yesterday.

MTrec is the first of a planned series of strategic acquisitions for Trust Tech across Europe.

The company plans to work closely with MTrec’s existing management team to create a global staffing and training solution by bringing together their collective resources, expertise and experience.

MTrec, which currently employs 56 members of staff and 2,500 temporary workers, expects it headcount to grow over the coming months in line with its forecasted turnover growth of a £59m increase in coming months.

Co-founder David Musgrave will rmain as managing director of the North East business and will retain a 15% equity stake in the business; the existing management team, including James Doyle and Chris Salkeld, will also continue in their existing roles.

David Musgrave, managing director of MTrec Ltd, said: “The completion of the deal marks the beginning of a new and exciting chapter at MTrec that will see us invest heavily in our operations to develop our service provision even further.

“The combined knowledge of MTrec and Trust Tech Inc. will enable us to deliver further growth by offering our clients training and staffing solutions on a regional, national and international basis”.

Yutaka Nishida, president and chief operating officer, added: “It is our highest delight to welcome MTrec to our group. We are covering different geographic areas of the world and can jointly grow faster."

Newcastle law firm Ryecroft Glenton Corporate Finance supported MTrec on the sale, providing financial and legal advice.

Carl Swansbury, partner at Ryecroft Glenton Corporate Finance, said: “David, Rob, Chris and James have built a remarkable business that has served the North East well over the past ten years. Now, with the support of Trust Tech Inc., it will be able to draw upon a significantly increased resource base to further its reach and serve new and existing clients better.

“The completion of the deal is very positive for MTrec and its shareholders as well as the North East, which will benefit from Trust Tech Inc.’s programme of investment that will create jobs and opportunities for the region’s labour force.

"It also serves as proof that overseas trade buyers still see the UK as an attractive option for inward investment – contrary to many of the experts’ initial predictions following the result of the European Referendum.”

 

If you’ve enjoyed this article, click on the link below to sign up for more similar stories in your area. 

Bqlive BQB Sign Up Button NE