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Inflexion Private Equity backs £24m MBO of Parasol Limited

Inflexion Private Equity, the mid-market private equity investor, announces today that it has led the £24m MBO of Warrington – based Parasol Ltd, the market leading employment services company.

Employing over 6,500 flexible employees, Parasol is the largest pure PAYE umbrella business in the UK and has experienced significant growth since its inception in 2000 coming sixth in the latest Sunday Times’ Fast Track 100 list.

Parasol’s success is due to the quality and drive of its management team and its scaleable IT infrastructure which provides operational efficiencies enabling it to process high volumes of transactions at a lower cost than its competitors. These characteristics ensure a high quality, value for money service which is highly regarded by both recruitment agencies and flexible employees. With Inflexion’s investment, it is the company’s objective to ensure the quality and breadth of its services are further enhanced.

Self-employed workers represent almost 13% of the UK workforce, a reflection of the growth in demand from both employers and employees for flexible working arrangements. With continued favourable changes in government employment legislation, it is estimated that over 20% of the UK work force will be self-employed by 2010.

Inflexion-managed funds have invested £9.4 million, for a majority equity position. Management has invested significantly, and a £12m debt package was provided by HSBC. Inflexion sourced the transaction off market and negotiated directly with the shareholders who were advised by Jonathan Ballard of Ballard Campbell.

Rob Crossland, Founder and Managing Director of Parasol said, “I am proud of how our dedicated and professional team has grown and developed Parasol since its establishment in 2000. Inflexion has recognised the potential in the business and with the benefit of their financial support and investment experience, we are delighted to be able to enter the next stage of the company’s development.“

John Hartz, Managing Partner of Inflexion Private Equity, said: “Once again this is a classic mid-market transaction for which Inflexion is known; backing a strong management team, running a market leading services business in a fast growing market.”

Andrew MainwaringJohn Hartz and Catherine Richards led the transaction on behalf of Inflexion. Andrew and John will be taking seats on the Parasol Board of Directors.