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US – Heidrick & Struggles confirms approach for sale of firm

June 04 2013

Executive search firm Heidrick & Struggles International Inc. (NASD: HSII) has been approached on a preliminary basis regarding a possible sale of the company, according to a statement from the company, and its board of directors is exploring strategic alternatives, including a possible sale.

“While it is the long-standing policy of Heidrick & Struggles not to confirm or deny market rumors or speculation, in response to media reports the company today confirmed it has been approached on a preliminary basis regarding a possible sale of the company,” the statement said.

Heidrick & Struggles issued the statement in response to media reports that the company may be taken private. The Financial Post reported on three possible offers, including one by the private equity part of The Blackstone Group, allegedly for $18.50-$20 per share. Read the story here.

A Heidrick & Struggles representative, who could not confirm or deny the Financial Post information, cautioned against taking the news out of context as such offers are not unusual for publicly traded companies to receive.

“There can be no assurance that the exploration of strategic alternatives will result in the consummation of any transaction,” according to the statement by the company. “Heidrick & Struggles believes its stand-alone strategic plan provides attractive growth opportunities for its consultants and associates, and can build value for its shareholders. The company does not intend to comment further regarding this matter until its board of directors has determined the outcome of its review process, or otherwise decides that disclosure is required or appropriate.”

Heidrick & Struggles first-quarter net revenue fell 3.3 percent to $103.0 million from $106.5 million in the first quarter of last year, and the company posted a net loss for the quarter of $1.2 million compared with a net income of $679,000 in the first quarter of the prior year.

Heidrick & Struggles ranks 71st on Staffing Industry Analysts list of world’s largest staffing firms with $529 million in 2011 revenue. It ranks as the second-largest retained search firm in the U.S. with $248 million in 2011 U.S. retained search revenue.

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