CHESEREX (dpa-AFX) - Swiss human resource services firm Adecco SA (AHEXY.PK) on Tuesday said it agreed to acquire Japanese professional staffing services provider VSN Inc. for an enterprise value of 90 million euros. The transaction is expected to close in the first quarter of 2012, subject to certain closing conditions.
Under the deal terms, the company noted that the acquisition is highly complementary, with an optimal strategic fit, offering a synergy potential of around 2 million euros. The company expects the transaction to be immediately earnings per share accretive and EVA enhancing in year one post the close of the deal, based on Adecco's internal hurdle rate of 10 percent. The deal will be financed with Adecco's existing financing resources.
Tokyo-based VSN has branches in 8 major cities, with over 200 full-time employees and around 2,200 associates currently on assignment at clients. The firm generated revenues of 157 million euros in 2010 and is focused mainly on the Engineering segment.
Zurich, Switzerland-based Adecco noted that the purchase doubles the company's exposure to professional staffing in Japan and reinforces its strong position in an attractive structural growth market. Adecco's professional staffing business in Japan currently represents 9 percent of Adecco's total revenues in that country.
Adecco Chief Executive Officer Patrick De Maeseneire said, 'We are delighted that VSN Inc. has agreed to join the Adecco Group. This is a rare opportunity for us to expand our Japanese Professional Staffing business in the world's second largest staffing market and it is an excellent fit with our global strategic priorities. The move will instantly double the contribution of professional staffing to Adecco's revenues in Japan and reinforces our strong position in an attractive structural growth market.'
Adecco noted that its Japanese unit is currently the fourth-largest player in the Japanese HR market, with a strong position in the Office segment and leading profitability.
In Zurich, Adecco closed trading on Friday at 39.35 Swiss francs, up 0.40 francs or 1.02 percent. In the US., AHEXY.PK closed Friday's trading at $20.86, up $0.04 or 0.19 percent.
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© 2012 AFX News
