Meraki Capital has completed its sixth acquisition of 2026. By doing so the recruitment-focused investment house has safeguarded more than 80 permanent jobs across these deals and maintained over 2,000 workers in their roles.
Five of the six newly acquired businesses are being integrated under the Magnus brand – now with access to a £9 million facility – as Meraki Capital continues to scale its national blue-collar recruitment platform through a series of targeted acquisitions.
The latest addition to the group is Tees Valley-based Rite People, a recruitment business with approximately £5 million turnover, specialising in temporary recruitment across logistics, manufacturing, construction and healthcare.
The business employs a small team, but has struggled with administrative burdens and ever increasing costs. What this company has created is long-standing relationships with clients across the region, with temporary recruitment forming the core of its operations – which is exactly the type of business Meraki Capital is interested in.
The six acquisitions completed so far this year represent a significant expansion of Meraki Capital’s presence in the recruitment sector, strengthening its ability to support businesses operating in some of the UK’s most critical industries. But illustrates a major problem bubbling for the UK’s employment market.
“Completing our sixth deal of the year is a major milestone for us, but more importantly, it represents the protection of more than 80 permanent jobs and the continuation of thousands of temporary roles that businesses across the country depend on,” said Nick Gordon, founder of Meraki Capital.
“What we are seeing across the recruitment sector right now is unprecedented pressure,” he continued. “Many of these businesses operate on very low margins and are facing sustained wage inflation, labour shortages and a constant rise in employment-related costs. Add to that the growing administrative burden and the pace of regulatory change, and it creates a very challenging environment for even the most established operators.
“There needs to be real focus from the Government on how businesses like these are going to be supported through this period,” he said. “These companies underpin supply chains, keep logistics networks moving and provide vital labour to manufacturing, retail, construction and healthcare. Without meaningful action, the risk is that more viable businesses will struggle under the weight of structural cost pressures.
“Our strategy is to step in where good businesses need support, provide the scale, infrastructure and investment required, and give them the opportunity to stabilise and grow. Bringing six businesses into the group in such a short period shows both the level of pressure in the market and the scale of opportunity to build something stronger.”
Rite People will become part of the Magnus platform, with their founder Melissa Coutts – an experienced recruitment professional with more than 20 years in the industry, remaining in place as manager to lead the business locally.
Leandra Smith, operational lead at Rite People, said: “Recruitment businesses have been under increasing pressure in recent years, particularly with the administrative burden, constant changes to the business environment and an ever-increasing cost base. It’s made operating independently more difficult, even for well-established companies.
“Becoming part of a larger organisation gives us strength and stability. It allows us to focus on what we do best – supporting our clients and delivering reliable temporary staffing solutions – while benefiting from the backing, experience, outsourcing and technology of Meraki Capital.
“I’m staying on as manager to help steady the ship and support the team through this next stage. We’ve built strong relationships over many years, and being part of Magnus gives us the platform to continue serving our clients with confidence.”
The acquisitions completed so far this year include City Centre Recruitment, Smart Recruitment, Wise Recruitment Group, TBC Recruitment, Rite People and SERT Recruitment, forming the foundation of a rapidly expanding national recruitment platform.
Meraki Capital’s strategy centres on acquiring established regional specialists and combining local expertise with group-level infrastructure, technology and operational support to help businesses navigate an increasingly complex economic and regulatory environment. Founded by entrepreneurial recruitment professionals, Meraki Capital has walked in the shoes of these recruitment businesses and now is offering hope and investment to support others.
