International human resources consulting group, Penna Consulting, has acquired recruitment communications company Barkers in an £8.6m cash deal. 

Penna bought Barkers, along with HR communications firm TCS, from the administrators of BNB Recruitment Solutions and certain subsidiaries, which went into administration on Monday. A significant element of the cash paid is in respect of trade debtors and fixed assets.

BNB had recently been following a policy of disposing of its non-core businesses, such as Hamlin Knight in January and executive search firm Norman Broadbent in November 2008.

The acquisition will be funded from Penna’s existing cash and working capital facilities. The board of Penna expects the acquisition to be earnings enhancing (pre-exceptional costs) in the current financial year.

Stephen Rowlinson, chairman of Penna, says: “I am very pleased that Penna’s financial and management strength has allowed us to act quickly and effectively to make this acquisition and to ensure that there is no disruption of services to clients.

“Barkers was placed into administration largely because the group had excessive debt and a number of onerous leases. However, the underlying business is sound and produced positive EBITDA [earnings before interest, tax, depreciation and amortisation] in 2008.

“Penna will continue Barkers’ successful strategy of working closely with clients as they progressively transfer recruitment budgets from print to digital media.”