Increasing market position in Spain, Italy, Poland, Switzerland, Luxembourg and entering the Austrian market
- Randstad to acquire staffing activities of USG People in Spain, Italy, Poland, Switzerland, Luxembourg and Austria
- Randstad will increase its market position and density of its network
- An investment of € 20 million to add revenue of € 434 million
- The transaction offers a significant opportunity for value creation and will be immediately accretive to Randstad’s earnings per share
Today, Randstad announced that it signed an agreement with USG People whereby Randstad will acquire USG People’s general staffing activities in Spain, Italy, Poland, Switzerland, Luxembourg and Austria. Within these countries, except for Austria, both businesses have a comparable offering and geographic coverage, which creates a unique strategic opportunity.
Ben Noteboom, CEO of Randstad says: “This transaction offers Randstad an opportunity to increase the density of our network which is important for reaching our strategic targets. Randstad will become the number one player in Spain, Poland and Luxembourg, while we increase our market position in Italy and Switzerland. The transaction also enables us to access the Austrian market. The combined activities benefit both clients and candidates and offer development opportunities for employees.”
The acquired activities of USG People generate revenue of € 434 million (FY 2012), mainly in general staffing and include over 800 corporate employees and 189 outlets. Randstad’s revenue in the countries in scope amounts to € 1.2 billion (FY 2012). The consideration to be paid amounts to € 20 million and does not exceed the working capital of the activities in scope. As such, the transaction is considered not material for Randstad’s financial position. Randstad will benefit from significant cross-selling opportunities, such as the introduction of inhouse services and sharing of best practices and processes. Our focus will be on capturing profitable growth, client profitability, and optimizing delivery models. Combined with further efficiency improvements and office optimizations, it is expected that these activities will soon start contributing to Randstad’s strategic targets. The transaction will be immediately accretive to Randstad’s earnings per share.
The transaction is subject to customary closing conditions including regulatory approvals, for example from the European Commission. The transaction has been approved by the boards of both companies. Randstad expects to close the transaction in June 2013. Randstad will finance the transaction by using its existing credit facilities. NautaDutilh is acting as legal advisor to Randstad.
Randstad specializes in solutions in the field of flexible work and human resources services. Our services range from regular temporary staffing and permanent placement to inhouse, professionals, search & selection, and HR Solutions. The Randstad Group is one of the leading HR services providers in the world with top three positions in Argentina, Belgium & Luxembourg, Canada, Chile, France, Germany, Greece, India, Mexico, the Netherlands, Poland, Portugal, Spain, Switzerland, the UK, and the United States as well as major positions in Australia and Japan. In 2012 Randstad had approximately 29,300 corporate employees and around 4,500 branches and inhouse locations in 39 countries around the world. Randstad generated a revenue of € 17.1 billion in 2012. Randstad was founded in 1960 and is headquartered in Diemen, the Netherlands. Randstad Holding nv is listed on the NYSE Euronext Amsterdam, where options for stocks in Randstad are also traded. For more information see www.randstad.com.