Randstad completes ‘unusual’ deal with USG People
4 April 2013
Randstad has acquired the general staffing assets of staffing firm USG People across a number of countries in Continental Europe.
Thu, 4 Apr 2013Randstad has acquired the general staffing assets of staffing firm USG People across a number of countries in Continental Europe.
Under the terms of the €20m (£17m) deal, Randstad will acquire USG People's general staffing activities in Spain, Italy, Poland, Switzerland, Luxembourg and Austria. The acquired activities of USG People generate revenue of €434m in 2012, mainly in general staffing and include over 800 corporate employees and 189 outlets.
Ben Noteboom, chief executive officer 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.”
A Randstad spokesperson tells Recruiter that the full benefits of the deal will accrue when the European economy recovers and as ongoing changes in legislation across many European markets come to fruition, making the use of agency workers more attractive.
John Bissell, senior consultant at LBA, a company that buys and sells staffing businesses, tells Recruiter that the deal is unusual for one of this size. He says that normally a deal of this magnitude involves the purchase of shares and not assets of the company as in this case.
Bissell says this type of deal is also riskier as it means that existing clients are required to sign new contracts, something they may not be prepared to do.
In a statement, USG People says the sale of “these relatively low-yield activities” is in line with its revised strategy of shifting its focus to markets where “it can offer its shareholders distinct added value and create sufficient scale to position itself in a leading and profitable way throughout the [business] cycle”.
Under the terms of the €20m (£17m) deal, Randstad will acquire USG People's general staffing activities in Spain, Italy, Poland, Switzerland, Luxembourg and Austria. The acquired activities of USG People generate revenue of €434m in 2012, mainly in general staffing and include over 800 corporate employees and 189 outlets.
Ben Noteboom, chief executive officer 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.”
A Randstad spokesperson tells Recruiter that the full benefits of the deal will accrue when the European economy recovers and as ongoing changes in legislation across many European markets come to fruition, making the use of agency workers more attractive.
John Bissell, senior consultant at LBA, a company that buys and sells staffing businesses, tells Recruiter that the deal is unusual for one of this size. He says that normally a deal of this magnitude involves the purchase of shares and not assets of the company as in this case.
Bissell says this type of deal is also riskier as it means that existing clients are required to sign new contracts, something they may not be prepared to do.
In a statement, USG People says the sale of “these relatively low-yield activities” is in line with its revised strategy of shifting its focus to markets where “it can offer its shareholders distinct added value and create sufficient scale to position itself in a leading and profitable way throughout the [business] cycle”.
