NEW YORK, Aug. 31 /PRNewswire/ -- TMP Worldwide Advertising & Communications, one of North America's leading recruitment advertising agencies, announced today that the Board of Directors of Monster Worldwide has approved a definitive agreement to sell the Company to its senior management team and VSS Mezzanine Partners, an investment fund managed by Veronis Suhler Stevenson. TMP Worldwide's present management team, led by President and Chief Executive Officer Michelle Abbey, will continue to operate the business. The purchase price of the transaction is $45 million.
"Today, TMP Worldwide Advertising & Communications is a leading recruitment and human capital advertising agency with a dominant position in the use of interactive tools. With Veronis Suhler Stevenson as our partner, we will have the opportunity to grow and to continue to serve our customers with the most cost-effective and measurable solutions to attract, hire, and retain the employees they seek," said Michelle Abbey, who was named President and CEO of the new organization. "Veronis Suhler Stevenson understands our goal of providing programs and products that blend online and offline services for an expanding client base across North America."
TMP Worldwide will be established as North America's largest independent recruitment advertising agency, and the only recruitment advertising agency recognized among the top 20 U.S. interactive agencies. In terms of 2005 sales and gross income, TMP Worldwide ranks first among recruitment agencies not affiliated with a marketing services conglomerate.
TMP Worldwide will maintain its present organizational structure and staffing throughout its regional operations in the United States, Canada and India. The Company will also remain part of the TMP Global Alliance of Companies, serving international relationships in the Americas, Europe, and Asia/Pacific.
Abbey continued, "Although we have always emphasized impartial media selection for our clients, our independence from Monster Worldwide further clarifies our strategy to provide the optimal, unbiased integrated mix of online and offline solutions for each customer. In addition, as a privately held, independent company, we have the opportunity to better serve our customers through our local and regional presences while also further leveraging our scale on a national and international level."
Trent Hickman, a Managing Director of Veronis Suhler Stevenson, a private equity and mezzanine capital investment firm specializing in the media, communications and information industries, said, "We believe that TMP Worldwide is an attractive platform company in the recruitment advertising agency sector because of the company's demonstrated commitment to its customers, many of whom have partnered with TMP for over 10 years. Michelle and her team deliver a total media solution to their clients that incorporates print and online media and provides a measurable return on investment."
Michael Kessler, also a Managing Director of Veronis Suhler Stevenson added, "TMP Worldwide represents our second investment within the recruiting sector of the human resources industry. Last year we invested in PreVisor, a leading provider of online pre-employment testing and assessment solutions for over 40,000 clients worldwide. Hiring and retaining a high quality workforce is a top priority for companies, and becoming increasingly difficult due to an aging population, competition and regulatory and compliance issues. We expect to benefit from the projected growth in spending on employee recruitment and selection."
Andrew J. McKelvey, Chairman and CEO of Monster Worldwide and founder of TMP Worldwide, underscored the value of the transaction to all parties: "Although Monster.com was originally a service offering of our advertising business, it has since become the core of a global media company. We now believe that TMP Worldwide's customers can best benefit from advertising counsel, planning, and services that are not directly affiliated with any other media or advertising ownerships. Having worked with Michelle Abbey for the past two decades, I am pleased that TMP Worldwide will continue to grow in her capable hands."
About TMP Worldwide Advertising & Communications
TMP Worldwide Advertising & Communications (http://www.tmp.com/) is North America's largest independent recruitment advertising agency and the only recruitment advertising agency recognized among the top 20 U.S. Interactive agencies. We are a single source for companies to communicate their employment offerings in order to recruit and retain the best talent. Through online and traditional communications, ROI campaign management services, creative and brand management, diversity enrichment, and media planning, TMP delivers Solutions with an Interactive Edge(R), achieving industry-specific results across virtually every sector in business and government. Headquartered in New York City with offices throughout North America and affiliates around the globe, TMP continues to set the standard for measurable and cost-effective HR communications.
About Veronis Suhler Stevenson
Veronis Suhler Stevenson (http://www.vss.com/) is a private equity and mezzanine capital fund management company dedicated to investing in the media, communications, information, and education industries in North America and Europe. VSS provides capital for buyouts, recapitalization, growth financings and strategic acquisitions to companies and management teams with a goal to build companies both organically and through a focused add-on acquisition program. To date, VSS equity and mezzanine funds have invested in 44 platform companies, which have together completed 205 add-on acquisitions resulting in a portfolio with realized and unrealized enterprise values of more than $9.1 billion.
About Monster Worldwide
Founded in 1967, Monster Worldwide, Inc. is the parent company of Monster(R), the leading global online careers and recruitment resource. Headquartered in New York with approximately 4,300 employees in 25 countries, Monster Worldwide is a member of the S&P 500 Index and the NASDAQ 100. More information about Monster Worldwide is available at http://www.monsterworldwide.com/.
Special Note: Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding Monster Worldwide's strategic direction, prospects and future results. Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, risks associated with acquisitions, competition, seasonality and the other risks discussed in Monster Worldwide's Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated in this release by reference.
