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Special announcement: Karingal expands employment services by acquiring ESH Group

Thursday, 24 November, 2016

Karingal's newly appointed Board Chair Dr Irene Irvine, today announced the acquisition of Employment Services Holdings (ESH) Group, following successful negotiations and the completion of an extensive due diligence process.  The ESH Group is a leading provider of employment, training, recruitment and labour hire services, comprising of two separate businesses - Employment Services Groups (ESG) and IPA Personnel. 

Dr Irvine said:  "Karingal's acquisition of ESH Group has provided the opportunity to further grow the organisation and diversify sources of income.  ESG is an employment service provider, and IPA Personnel provides recruitment and workforce solutions.  This important acquisition will become part of the Karingal St Laurence merged entity, announced earlier this year, when it is legally formed in early 2017.

Through this acquisition, employment services that are currently delivered by Karingal, will now expand into new areas across New South Wales, Australian Capital Territory (ACT), Queensland and Western Australia.  Karingal's employment services division MatchWorks currently delivers jobactive, Disability Employment Services and Work for the Dole contracts in Victoria, South Australia and Queensland. 

This purchase now ranks MatchWorks and ESG combined as a substantial national provider of employment services across Australia.  The acquisition of IPA Personnel also provides a recruitment and workforce solutions business to expand Karingal's services to employers across Australia.

As part of Karingal's strategy, the Board and Executive have been actively seeking new business opportunities that support Karingal's growth and future financial viability, through scale and diversity. 

Mike McKinstry, CEO of Karingal, said, "This acquisition provides Karingal with the opportunity to continue in delivering and supporting clients and job seekers in the employment sector.  The increased geographical coverage and income diversification will allow Karingal to continue to advocate for people with a disability and those who are disadvantaged in the community".

Karingal's annual revenue will grow from $114m today to in excess of $230m per year with this acquisition, and the number of employees will increase from 1,700 currently in Karingal to 2,000. In the new year, the combined Karingal St Laurence revenue will then be ~$280m, and total number of employees will be 2800 nationally.

Mike McKinstry said, "This acquisition provides an exciting opportunity for Karingal St Laurence, a leading Geelong based organisation, to demonstrate leadership in our sectors and to become a national service provider".

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