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Adecco Group, the world’s largest staffing firm, plans to acquire New York-based outplacement firm Drake Beam Morin Inc. The deal gives Drake Beam Morin an enterprise value of €149 million (US$211.6 million), and the transaction is expected to close in the third quarter.
Adecco’s Lee Hecht Harrison outplacement division ranked as the second-largest outplacement firm on Staffing Industry Analysts’ 2010 lists of largest staffing firms. Drake Beam Morin ranked as the third-largest. ManpowerGroup Inc.’s (NYSE: MAN) Right Management divison was the largest that year.
Drake Beam Morin posted revenue of €84 million (US$111.3 million) in 2010.
Adecco reported Lee Hecht Harrison’s main markets were in the U.S. and France, and the acquisition of Drake Beam and Morin will expand its geographic reach and give it a leading position in the United Kingdom, Canada and Brazil.
Adecco expects cost synergies of approximately €10 million.
“I am very pleased that Drake Beam Morin Inc. is joining forces with Lee Hecht Harrison,” said Adecco CEO Patrick De Maeseneire. “The combined businesses will provide a global presence in the outplacement and talent development services sector, enabling us to better serve our clients internationally. This fits very well with our customers’ increasing needs for global solutions across the full range of HR services. The move strengthens Adecco with an effective counter-balance to the temporary and permanent staffing business, given the counter-cyclical nature of the career transition sector.”
Drake Beam Morin was founded in 1967. It was owned by Compass Partners, a London-based private equity firm.