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Dutch recruiter Randstad today announced that it has received clearance from the European Commission regarding the acquisition of some of USG People’s staffing activities in Europe. Staffing Industry Analysts first reported about the deal in April.
Randstad plans to acquire the staffing activities of USG People in Spain, Italy, Poland, Switzerland, Luxembourg and Austria, which will significantly increase its market position and network in the region.
The combined revenue of these activities was €434 million last year and the sale will net the company €20 million. “With the approval from the European Commission an important hurdle has been cleared,” Randstad said.
USG People, one of the four-largest staffing companies in Europe, said the sale of these relatively low-yield activities is increasing its own profitability and supports its strategic financial targets.
Randstad now expects the transaction to close this month. According to the company, the acquisition includes over 800 corporate employees and 189 offices.
It said that the acquisition will offer “a significant opportunity for value creation and will be immediately accretive to Randstad's earnings per share.” And the company’s share price improved slightly when the announcement was made this morning. In early trading, Randstad’s share price rose by +0.3% to €31.92, up +41% from a year ago.
The recruiter has come under pressure from tough trading conditions in Europe with first-quarter results showing that revenue continued to fall in the first three months of the year, particularly in France, the Benelux countries and Southern Europe.