Recruit and USG People agree on offer for USG People shares

22/12/2015

usgpeoplerecruitRecruit Holdings and USG People jointly announce today that they have reached conditional agreement on a merger protocol related to a recommended all cash offer by Recruit for all issued ordinary shares of USG People at an offer price of € 17.50 per ordinary USG People share, subject to customary conditions. Through this transaction both Recruit and USG People will realise important strategic objectives, creating a truly global specialised provider of Staffing and innovative HR services.

Masumi Minegishi, Chairman of the Board of Directors and Chief Executive Officer of Recruit: “Recruit’s midterm vision is to become the world leader in human resources by around 2020, in terms of number of positions filled. To achieve this, we are seeking to grow our business platforms in Japan and abroad organically and through acquisitions. The acquisition of USG People is perfectly aligned with this strategy. Recruit has proven its ability to drive profitable growth through mergers and the Board of Directors is deeply committed to supporting the continuation of this journey. Following our acquisitions in the United States, the United Kingdom and Australia we are now taking the next step by entering the continental European market. We are excited by USG People, which we see as a strong business that operates fantastic brands and has a deep understanding and expertise of the markets it operates in. Together with USG People, we aim to become a recognised industry leader in Europe. The time has now come to take another significant step forward. We see great long-term potential in combining USG People with Recruit.”

Rob Zandbergen, Chief Executive Officer of USG People: “Recruit’s offer to join forces with our organisation brings attractive perspectives for all our stakeholders. A combination with Recruit, a successful global organisation, provides the opportunity to accelerate our growth and innovation development and to strengthen our position in continental Europe considerably, all this being in the interest of our customers and employees. Together we have the ability to accelerate the execution of our strategy. Recruit and USG People share common ambitions and similar company cultures and values. Also geographically, the companies are highly complementary with no overlap with the current operations of Recruit in staffing activities, hence the current USG People organisation will serve as the basis for the realisation of our joint growth ambition in the continental European market, giving ample opportunities to USG People’s employees.”

Cees Veerman, Chairman of the Supervisory Board of USG People: “The Supervisory Board has thoroughly discussed and reviewed USG People’s strategic options over the past year. The proposal to team up with Recruit has been considered carefully. Following the divestments of USG People Energy and the General Staffing activities in 2013 USG People has brought back the multibrand to four distinct star brands in our four core geographies in 2014. Geared towards commercial and operational excellence and the investments undertaken in innovative companies and digitisation, we are convinced that the best way forward for USG People and all its stakeholders is to join forces with Recruit. The employees and management of USG People have done a great job in improving the operational and financial performance. The merger affords the opportunity to provide access to greater resources to ensure the realisation of our strategy.”

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This text is an excerpt from the press release we published om 22 December 2015. Download the press release for the full text.