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Support services group, Mouchel Parkman, has bought fellow local government contractor HBS for £46.24m. The two companies already work together on a £300m joint venture with Oldham MBC, known as the Unity Partnership. The partnership provides property, highways and customer services for the council, and also offers coaching and mentoring to local schools and colleges. And, as sub-contractors for IBM, they both recently won preferred-bidder status for the 10-year Improving Standards In Somerset (ISIS) partnership with Somerset CC. Mouchel Parkman chief executive, Richard Cuthbert said: ‘We see great potential for increasing our market share, most obviously in the local government market, particularly as a result of the Government's shared service agenda, but in other sectors too. ‘In addition, we plan to build, principally organically, on the acquisition of HBS in order to move further into the added-value areas of IT consulting and outsourcing. HBS is definitely a business that's now on the upturn.' Earlier this year (The MJ, 25 April), Mouchel Parkman announced it was preparing a £125m war chest to fund acquisitions. In November 2006, the group bought Ewan Group, Hornagold and Hills, and Traffic Support, for a total of £50m. ‘We are delighted with this deal,' said HBS chief executive, Peter Manning. ‘Having spent the last three years stabilising and then starting to grow HBS again, the company is in ideal shape to join forces with Mouchel Parkman, a business we know and respect. ‘Our key partnership contracts have completed their early investment phase and, with good relationships in place, they provide a tremendous platform and a set of reference sites to take the business forward. I am very pleased to be handing over the reins to Mouchel Parkman,' he added.

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BUSINESS

Mouchel Parkman buys HBS for £46m

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