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DHR sets sights on Caldwell on heels of acquiring CTPartners

July 06, 2015

DHR, a Chicago-based executive search firm, last week purchased approximately 5% — an aggregate of 1,032,000 shares — of The Caldwell Partners International Inc. (TSX: CWL.TO). Caldwell Partners is a Toronto-based executive search firm with operations in Canada and the US. DHR believes it is now Caldwell Partner’s third-largest shareholder.

DHR reported it has been in communication with Caldwell Partners’ management in recent weeks regarding DHR’s interest in Caldwell, and DHR intends to continue exploring its interest in a negotiated transaction with Caldwell. DHR expects that such a transaction would be at premium to the recent market price of Caldwell’s common shares, and that DHR would not require any external financing to complete the transaction.

The Caldwell Partners today issued a statement that, on the evening of July 1, it received a letter from DHR chairman David Hoffmann indicating that as of June 26, DHR was the direct or indirect purchaser and holder of 1,032,000 common shares of Caldwell Partners, representing approximately 4.9% of its outstanding common shares.

“This is the first instance of communication from DHR International to the board of Caldwell Partners, which was not in current discussions with DHR International regarding any proposed transaction,” the statement said. “In its letter, DHR International indicated an interest in pursuing such discussions, although not specifying the form or value of any transaction. The board of directors of Caldwell Partners will review the request for a discussion, as it would any such proposal.”

More than 500,000 shares of Caldwell Partners’ common stock traded June 25, increasing the share price more than 40% to $1.84 and spurring a trading halt

On July 1, DHR acquired the assets of CTPartners Executive Search Inc. (NYSE MKT: CTP), the seventh-largest US retained search firm. DHR ranked as the sixth-largest US retained search firm prior to the CTPartners deal.