Randstad to Acquire SFN Group for $14/Share
Randstad (RAND.AS), the second largest HR services provider in the world, and SFN Group (NYSE: SFN) 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.
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