Outsourcing Inc. (2427:TYO), the third-largest staffing firm in Japan, announced that it has acquired S.S. Sangyo Co. Ltd, a Japanese firm involved in the worker dispatch business, outsourced contracting business and paid job placements.

The effective date of the transaction is 1 February 2021 and the group said the acquisition will have a negligible impact on consolidated financial results for the full year ending December 2021. The acquisition price is undisclosed.

Originally founded in 1963, S.S. Sangyo is engaged in dispatching and outsourced contracting as well as recruiting and placing for the manufacturing industry, and has a blue-chip client base. With a workforce of over 80 people, the company has an extensive track record in its outsourced contracting using foreign workers, and a long history in the employment of foreigners, including conducting courses for students who want to work in Japan through tie-ups with local national universities.

For the year ending 31May 2020, S.S. Sangyo achieved annual sales of JPY 5,289 million (USD 50.9 million).

According to Outsourcing, by joining the group, S.S. Sangyo  can expect to further expand its scope of business by leveraging the group’s management resources not only for sales capabilities, but also for the hiring capabilities of Japanese staff as well as inviting those of Japanese descent to come to work in Japan.

Through the acquisition, Outsourcing expects to further expand its areas of operation for foreign workers and skilled workers, and also strengthen its ability to respond to demand in the Aichi and Kyushu regions. Going forward, the group will continue to “promote the establishment of a global HR mobilisation network” to tap the growth potential of the increasing global population, as well as strengthen its growth base through the smoothing out of its earnings performance.

Outsourcing said it has focused its M&A efforts on projects that are expected to generate synergies based on strict standards cultivated through numerous M&A achievements, rather than blindly taking in other companies in the same industry.

In November, Outsourcing announced that it had agreed to acquire Cpl Resources, the largest staffing firm in Ireland in a deal valued at approximately €318 million.

Outsourcing’s revenue for the year ending 31 December 2020 was JPY 365 billion (USD 3.5 billion) an increase of 1% over the prior year period. Annual operating profit declined by 10% to JPY 13.75 billion (USD 132.3 million).