Inflexion-backed MBO for Calco Group
BCMS has advised the shareholders of recruitment and training specialist Calco Group on its sale to the management team, in a management buyout backed by leading mid-market private equity firm Inflexion.
Founded in 2004, Calco is a leading Dutch provider of outsourced IT recruitment and training services to large blue-chip corporates, focusing on the provision of junior professionals mainly to the finance and insurance sectors, with clients including the main banks and the top insurance companies in the Netherlands.
More recently, Calco has entered into new industry segments such as consumer goods, telecoms, energy, logistics and healthcare and aims to continue to expand into these newer markets.
“Inflexion is a natural partner for Calco and we are excited about the next stage of our development together” – Kelly Grooteman, Calco
Calco has developed a MasterClass programme where new joiners are intensively trained over two months, tailored to client specifications, and then placed at client sites under contract for 22 months. At the end of their placement the client has the free option, but not the obligation, to offer an employment contract to the employee. Calco’s clients have effectively outsourced part of the recruitment and training of junior IT staff and retain full flexibility on a “try before you buy” model.
Calco is differentiated from other IT service companies as it encourages and accepts applicants from all educational backgrounds, focusing on the quality and potential of the individual rather than their existing qualifications. Alongside the MasterClass programme, Calco also provides junior and experienced IT employees of MasterClass quality to clients on a temporary basis.
Calco operates its training base in Maarssen in the Netherlands, servicing clients in its core Dutch market as well as more recently in Germany.
Calco’s business model, market dynamics and growth opportunities are similar to those of Inflexion’s investment in FDM, which was successfully floated on the London Stock Exchange in 2014.
Deal perspectives
At the time of the transaction in 2018, Kelly Grooteman, CEO, Calco, commented: “With their strong industry knowledge, Inflexion is a natural partner for Calco and we are excited about the next stage of our development together. Calco has shown consistently strong growth over the past few years and we believe that together with Inflexion there is scope to accelerate that growth. We remain focused on delivering best-in-class service to our clients.”
René Scholten, Calco founder, commented, “The management team at Calco have done an excellent job in delivering consistently strong year-on-year growth and a first-class service to Calco’s valued clients and MasterClass professionals. With their track record, we believe Inflexion is an excellent partner for Management to continue this successful growth”.
John Hartz, Managing Partner, Inflexion, commented, “Calco operates in an industry we know well and benefits from the leading market position in the Netherlands with a blue-chip client base in a growing market. We look forward to drawing upon our industry experience as we partner with Calco’s strong management team to support the company’s ambitious growth strategy going forward.”
