A recruitment agency which supplies lorry drivers has been bought by management for £8.2 million.

SMS Agencies, based in Crawley, has been taken over by directors Diana Cornish and David Lake in a deal which allows the existing owners to retire.

Ms Cornish, former chairman of recruitment firm Blue Arrow, is the company's new chief operating officer, while Mr Lake is the company's chief executive.

The pair plan to increase SMS's national presence with more branches in the North.

Ms Cornish said SMS was ideally placed to capitalise on a raft of changes to employment law affecting the driving industry.

She said: "The UK recruitment market is estimated at £24 billion per annum but it is extremely fragmented and there are no large players competing effectively in the driving sector.

"With increasing legislation over working practices and hours, and the requirement for a special licence and expensive training to drive heavy goods vehicles, we are confident the demand for temporary drivers will continue to grow.

"With SMS's specialist knowledge and ability to supply experienced drivers for all forms of road transport, we are well placed to meet the growing demands of the industry."

The management buyout was backed by Newcastle-based investment company Northern Venture Managers (NVM) and Fortis Bank in a deal led by finance group Deloitte.

SMS, which was set up in 1991, supplies drivers for all types of vehicles to the transport and logistics sector and has 30 branches across the UK.

The company continues to employ ex-drivers as branch managers to ensure the firm has a thorough understanding of customers' needs.

Karl Harridence, the investment manager leading the transaction for NVM, said SMS had the capacity to grow significantly.

He said: "Both David Lake and Diana have excellent track records in the temporary staffing and recruitment industry.

"We believe SMS has excellent potential for growth and will form the ideal foundation for a larger group of niche recruitment businesses."

David McClelland, of Fortis Bank, said: "The management team of SMS have recognised a real market opportunity and this is the start of what will surely be a progressive buy-and-build strategy in the manpower business."