AMSTERDAM, July 20, 2011 /PRNewswire/ --
- Randstad to acquire SFN Group through a cash tender offer at $14 per share
- Randstad will become the third-largest HR services provider in North America
- A unique strategic fit: enhancement of service offerings and geographic coverage
- The transaction will be immediately accretive to Randstad's earnings per share
- Randstad has agreed on a new syndicated revolving credit facility
Creating a leading HR services provider in North America
Randstad (RAND.AS), the second largest HR services provider in the world, and SFN Group (NYSE: SFN), a leading workforce solutions company in North America, today announced that they signed a definitive agreement whereby Randstad will acquire SFN Group through a cash tender offer. As a result of the acquisition, Randstad will become the third-largest HR services provider in North America, doubling its presence in the US and reinforcing its leading position in Canada. Randstad and SFN Group have a comparable service offering in North America and a complementary geographic coverage, which creates a unique strategic fit.In North America, the combination will have revenues of $4.6 billion (pro forma, LTM March 31, 2011) of which 39% in Professionals, 52% in Staffing and 9% in HR Solutions (Payrolling, Managed Services and Recruitment Process Outsourcing). This represents under 5% of the highly fragmented North American HR Services market. The combination will have over 5,000 employees and operate from over 1,000 outlets. As a result of the transaction, the Randstad Group will have combined revenues of approximately $22 billion/ euro 17 billion (pro forma, LTM March 31, 2011). Randstad plans to commence a cash tender offer for all shares at $14 per share. The transaction is subject to customary closing conditions including regulatory approvals and the tender of at least 50% of SFN Group's outstanding shares. The transaction has been unanimously approved by the boards of both companies. Randstad expects to close the transaction in September 2011. Randstad will finance the transaction by borrowings under its existing credit facilities. Ben Noteboom, CEO of Randstad says : "We are very excited about the opportunity to become a leading company in North America. SFN Group is a great company with professional and dedicated people, a good match with Randstad. The future combination will increase opportunities for growth and development of all employees. And by sharing best practices and leveraging the cross selling potential, we will be well-positioned to offer our clients and candidates an unrivaled portfolio of services. We are proud to be taking another step in shaping the world of work." "The executive management and I are confident that the combination of our two companies is a strong strategic fit that will not only deliver expanded service offerings for our clients in North America, but also creates opportunities to service them on a global basis," says Roy Krause, SFN Group President and Chief Executive Officer . "Both companies have complementary cultures and values which will provide growth opportunities for our staff associates." Compelling strategic rationale The HR services industry is still relatively young, highly fragmented and continues to develop quickly. Over the years, Randstad and SFN Group each have expanded rapidly through a combination of organic growth and a series of successful acquisitions. Many global trends impact the industry, ranging from demographic changes, skills shortages, the increasing need for flexibility and the growing customer need for global one-stop solutions. Randstad and SFN Group will have the scale and scope to capitalize on these trends in the U.S. and Canada. The combination will benefit both clients and candidates and offers more development opportunities for all employees. By combining with SFN Group, Randstad becomes a leading HR services provider in the U.S. and Canada offering an unrivaled portfolio of services and will be well-positioned to match candidates with clients who are looking for a total offering. The acquisition of SFN Group fits perfectly into Randstad's stated strategy:
- Randstad becomes a leader in the Professionals staffing segment in North America, with significant expertise in IT and Finance & Accounting;
- Randstad will hold a number two position in the administrative segment and a top five position in the light industrial staffing segment;
- The density of Randstad's office network will be significantly enhanced across the U.S.;
- With Inhouse Services, Randstad has a unique service offering for large industrial and logistical clients;
- Randstad becomes the leader in Recruitment Process Outsourcing in North America with an enhanced platform for growth in Managed Services.
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