Tue, 21 Apr 2026 | BUSINESS SALE
Rite People, a Tees Valley-based recruitment company specialising in temporary staffing solutions in logistics, manufacturing, construction and healthcare, has been acquired by recruitment-focused investment house Meraki Capital.
The deal comes amid mounting pressure on businesses in the UK recruitment sector, with independent firms being particularly affected. A combination of pressures means that, for many independents, there are significant strategic and financial reasons to join a larger group.
The purchase of the £5 million turnover business is Meraki Capital’s sixth acquisition of 2026 so far. These acquisitions have significantly expanded the firm’s presence in the recruitment sector, bolstering its capacity to support companies operating in some of the most critical industries in the UK.
Rite People joins Meraki Capital having recently struggled with administrative burdens and persistent cost increases. The nine-strong team will join the Magnus platform, with founder Melissa Coutts continuing to lead the business as Managing Director.
Leandra Smith, Operational Lead at Rite People (pictured above), said that recruitment businesses had come under mounting pressure over recent years, particularly due to “the administrative burden, constant changes to the business environment and an ever-increasing cost base.”
According to Smith, this had made it increasingly difficult for even well-established businesses to continue operating independently. Joining a larger group, Smith said, would provide the firm with strength and stability, while allowing the team to focus on supporting clients and delivering staffing solutions, backed by Meraki Capital’s experience, outsourcing and technology.
Nick Gordon, founder of Meraki Capital, commented: "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.”
Discussing the state of the UK recruitment sector, Gordon added: "What we are seeing across the recruitment sector right now is unprecedented pressure. 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."
Gordon said that the government needs to focus on how to support such businesses during the current periods, saying that these firms “underpin supply chains, keep logistics networks moving and provide vital labour to manufacturing, retail, construction and healthcare.”
He continued: “Without meaningful action, the risk is that more viable businesses will struggle under the weight of structural cost pressures."
The adverse conditions facing many UK recruitment companies could drive higher levels of M&A in the sector this year, after dealmaking dipped in 2025
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