(Sharecast News) - Recruitment and training company Staffline announced on Friday that its PeoplePlus division has agreed terms to sell its apprenticeships business to Babington Business College for "a nominal fee".
The AIM-traded firm described Babington Business College as a "leading professional training course, apprenticeships and traineeships provider".
It said it expected the transaction to complete in early December, enabling an orderly transition for both clients and learners.
Under the agreement, Babington would acquire contracts and assets from PeoplePlus associated with the delivery of apprenticeships across England and Scotland.
This transaction formed part of PeoplePlus' strategic re-focus on its core employability and adult skills capabilities, the board said, as it looked to leverage its position within those markets to capitalise on the significant increases in funding for central and devolved government contracts that had recently been announced.
"We are pleased to have reached an agreement with Babington, which will ensure our apprenticeship clients and learners continue with another high-quality training provider," said chief executive officer Albert Ellis.
"PeoplePlus has unique capabilities, experience and scale in the employability and adult skills sectors and this transaction will enable the division to fully focus on the UK wide unemployment challenge that now exists."
At 1206 GMT, shares in Staffline Group were up 6.67% at 36p.
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