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KKR sells Japan staffing firm in $716 million deal

March 26 2013

Private equity firm Kohlberg Kravis Roberts & Co. struck a deal to sell Intelligence Holdings Ltd., one of Japan’s largest staffing firms, to Japanese staffing giant Temp Holdings Co. Ltd. for an enterprise value of ¥68.00 billion (US$716 million). The enterprise value represents equity value plus net debt.

The deal is expected close in late April 2013 after regulatory approval. The U.S.-based private equity firm is selling the company along with Intelligence’s management.

Staffing Industry Analysts ranks Intelligence No. 51 on the list of largest global staffing firms.

“By joining together with Temp Holdings, we are creating a group that aims to be a new leader in the HR solutions business in Japan and Asia,” said Intelligence President and CEO Hiotoshi Takahashi.

The combined company is expected to have revenue of more than ¥320.00 billion (US$3.37 billion), according to KKR. The figure is based on Temp Holdings and Intelligence revenue for the 12 months ended in December.

KKR had acquired Intelligence from Usen Corp., a Tokyo-based cable broadcaster and media content provider, in 2010 for ¥32.50 billion (US$365.0 million). The private equity firm said Intelligence’s revenue rose 45 percent during the three years it was involved with the firm.

Temp Holdings ranks No. 10 on the list of largest global staffing firms. Kelly Services Inc. (NASD: KELYA) is Temp Holdings’ fifth-largest shareholder with a 5.02 percent stake in the firm, according to Temp Holdings’ website. Kelly President and CEO Carl Camden serves on the board of Temp Holdings. Kelly and Temp Holdings also announced a joint venture in July 2012, and Temp Holdings acquired a 4.8 percent stake in Kelly Services in 2010.

The largest shareholder in Temp Holdings is Yoshiko Shinohara, the company’s chairman, president and representative director. Shinohara appeared on the 2011 version of the Staffing 100 list. Forbes put her on the list of “Asia’s 50 Power Businesswomen.” She founded the company in 1973.

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