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Chicago-based executive recruiter Heidrick & Struggles may be up for sale after the Financial Post revealed on Monday that the firm has been approached by a possible suitor and may be on its way to privatisation.
The recruiter has since issued a response, confirming a potential sale of the company. “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 that it has been approached on a preliminary basis regarding a possible sale of the Company,” the statement read.
The firm further stated that “its Board of Directors decided to explore strategic alternatives, including a possible sale of the Company and continuing to execute against the Company's strategic plan as an independent company.”
But doubts remain in place whether a sale of the firm will go ahead. The firm emphasised that “there can be no assurance that the exploration of strategic alternatives will result in the consummation of any transaction. Heidrick & Struggles believes its stand-alone strategic plan provides attractive growth opportunities for its consultants and associates, and can build value for its shareholders.”
It added that “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.”
A suitor was not identified, but the Financial Post reported that the private equity arm of Blackstone Group was in discussions, offering $18.50 to $20 a share. Heidrick’s share price jumped by almost +20% in Monday’s trading session.
Last month, the firm reported a decline in first-quarter revenue following tough trading conditions in Europe.