Melorio to buy Zenos duo 

Melorio has continued its consolidation strategy in the UK’s vocational training sector by agreeing to buy two government-funded providers.


Melorio has continued its consolidation strategy in the UK’s vocational training sector by agreeing to buy two government-funded providers.

Melorio has continued its consolidation strategy in the UK’s vocational training sector by agreeing to buy two government-funded providers.

The company is on the verge of adding Zenos and Zenos Learning, training specialists serving the information and communication technology sector, to its business in a reverse takeover.

If granted shareholder approval, the deal will cost Melorio £20.6 million, which will be paid on completion. The agreement includes payments of up to £13 million depending on the acquired companies’ financial performance by October 2010.

The deal will be funded by a new £23 million debt line provided by Barclays and Clydesdale Bank, £6.5 million worth of shares and loan notes.

The proposed acquisition of these companies, which are being sold by George and Sandra Anderson, follow October’s takeover of HB, an apprenticeship-training provider to the construction sector, for £2.7 million.

Melorio chief executive Adrian Carey said it is a testament to the strength of the target companies that we have raised so much from Barclays and Clydesdale. “Zenos has not only demonstrated impressive growth, its business model is unique to the industry it serves and its exemplary delivery has earned it the highest Ofsted award.

“Furthermore, the quality of its operating model, its relationships with funding providers and the knowledge and experience of its management team will be of great benefit to our business,” he added.

The Zenos companies train school leavers through their 14 academies as well as offering advanced apprenticeships and Level 3 NVQ qualifications to employees in the workplace. Turnover grew to £11.5 million from £3.2 million in the past two years. EBITDA increased to £2.5 million from £811,000 during the same period.

Marc Barber

Raven Connelly

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses.

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