A logistics recruitment and distribution company – which is backed by Praetura – has bought a Surrey-based counterpart in a move set to create one of the largest independent providers of HGV drivers and warehouse staff in the UK.
The undisclosed deal will see Challenge Group and TRG Logistics merge to become Challenge TRG Group.
The current chief executive and managing director of Banstead-headquartered TRG – Nick Gordon and Steve Imber respectively – will continue in their roles and become shareholders in the newly-formed business.
Challenge TRG Group will have a combined turnover of £120m and collectively employ about 4,000 temporary workers and 150 permanent employees. It will also operate from two HQ sites in the North and South – Wigan and Surrey – alongside its regional hub structure.
Tom Cropper, group chief executive at Challenge TRG Group, said: "We're delighted to be joining forces with Nick, Steve and their team to become a significant player in the delivery of manpower to retailers, logistics and distribution providers across the UK.
"As separate businesses we have built up an excellent reputation for supplying high-quality drivers and temporary warehouse workers, with a strong emphasis on skills and service delivery. We intend to grow that capability as a combined group and to continue to invest in people, as well as the bespoke TRG IT system."
Gordon added: "Merging with Challenge Group was a natural move for TRG, as both companies share a number of important synergies – not only in our commitment to service delivery, but the culture and ethos that underpins how we operate.
"I'm confident that together we will provide some of the industry’s biggest players with excellent manpower across the industrial and transport sectors."
The deal was financed by Praetura and HSBC. Challenge Group was advised by SAS Daniels, Hill Dickinson and Grant Thornton, while TRG Logistics was advised by Gateley Plc, Grant Thornton and Boxington Corporate Finance.