Dutch employment agency to buy leading US HR company
Dutch temporary job agency Randstad announced Wednesday it will buy leading US workforce solutions company SFN Group in a multi-million dollar deal, making it the "third-largest human resources services provider in North America."
"Randstad, the second-largest HR services provider in the world and SFN Group... today announce that they have signed a definitive agreement whereby Randstad will acquire SFN Group through a cash tender offer," Randstad said in a statement, sent late Wednesday to AFP in The Hague.
Under the terms of the agreement, Randstad will start a cash tender offer to buy all of SFN Group's outstanding shares of common stock at a price of $14 US dollars (9.8 euros) per share, at a total price of around 771 million dollars.
The transaction was subject to customary closing conditions including regulatory approvals and the tender of at least 50 percent of SFN Group's outstanding shares, and has been approved by the boards of both companies, Randstad added.
"Randstad expects to close the transaction in September 2011," it said, adding it would finance the deal through borrowings under its existing credit facilities.
Randstad, the second largest company of its kind in the world, had about 25,500 employees in 44 countries at the end of 2009.
The deal with SFN Group will see it combine "over 5,000 employees and operate from over 1,000 outlets," it said.
© 2011 AFP