Announcement of Acquisition of Shares in Atterro, Inc. a U.S. staffing company
Apr. 28, 2015
Recruit Holdings Co.,Ltd.
Recruit Holdings Co., Ltd. (hereinafter the "Company") announces that it has resolved at the meeting of the Board of Directors held today to acquire 100% of total outstanding shares in Atterro, Inc. (hereinafter "Atterro"),a U.S. staffing company, as follows.
1. Purpose of the acquisition of the shares
In an aim to apply the management practices the Company established in domestic staffing business to overseas staffing business, the Company made a series of acquisitions starting with The CSI Companies, Inc., a U.S. staffing company, in 2010; STAFFMARK HOLDINGS, INC., a U.S. staffing company; Advantage Resourcing America, Inc. (hereinafter "ARA") and Advantage Resourcing Europe B.V. that operate staffing business in the U.S. and Europe in 2011. Most recently, it acquired an Australian staffing company, Peoplebank Holdings Pty Ltd, in January 2015, and Chandler Macleod Group Limited, an Australian staffing company listed on the Australian Securities Exchange, in April. In order to further accelerate and expand this effort, the Company has on this occasion resolved to acquire shares in Atterro, which engages in staffing business in the U.S.
Atterro is a staffing company which provides services in a wide range of job categories from clerical works and light works to IT and engineering operations in the U.S., with net sales at $255,682 thousand and EBITDA at $10,218 thousand (for the year ended December 31, 2014). The Company will pursue further increase in revenue going forward by integrating its staffing business knowhow accumulated in Japan, the U.S., etc. and Atterro's extensive experience and customer base in staffing business.
In this acquisition deal, the Company will acquire the Atterro's shares through ARA , a wholly owned U.S. staffing company of the Company, from the perspective of affinity of ARA with the area of business operations and coverage of operation areas.
The Company has a long term vision to become the No. 1 group in global matching platform with respect to all business areas of the Group including Marketing Media business by approximately 2030, in addition to become the Global No. 1 in HR Media business and Staffing business by approximately 2020.
In order to achieve this goal and to acquire and expand new business, the Company will proactively pursue the acquisition of new businesses and expansion of business through M&As in Japan and overseas based on the stable cash inflow from existing domestic businesses. This transaction shall be a part of initiatives related to Staffing operations.
3. Outline of subsidiary acquiring the shares (Advantage Resourcing America, Inc.)
4. Outline of transferring subsidiary (Atterro, Inc.) (As of April 28, 2015)
- Prudential Capital Partners III, L.P. holds stock acquisition rights as of April 28, 2015. The shareholding ratio above indicates the shareholding ratio after stock acquisition rights have been converted into common stocks as of the date of execution of share acquisition (scheduled on May 22, 2015).
5. Outline of major sellers of the shares (As of April 28, 2015)
(1) Prudential Capital Partners III, L.P.
(2) Clay E. Morel
(3) Michael Morris
6. Number of shares to be acquired, acquisition cost, and shares held before and after the acquisition
- 1. The number of shares to be acquired includes the total amount of shares of common stock and classified stock of Atterro.
- 2. "Shares, etc. of Atterro" under acquisition price represents the sum of the total value of the respective consideration for common stock and classified stock of Atterro and the total value of consideration for shares to be acquired by the Company upon exercising all stock acquisition rights already granted by Atterro.
- 3. The number of shares to be acquired and the number of shares held after the transfer are based on the number of shares as of April 28, 2015.
- 4. The sum of consideration for stock, etc. of Atterro converted at ¥119.66 to $1 and estimated amount of advisory fees, etc. is listed as total acquisition cost (estimated amount).
8. Future forecasts
The impact of the acquisition of shares on the consolidated financial results of the Company for the year ending March 31, 2016 is currently under review.