randstad to acquire part of european staffing activities of usg people.

Increasing market position in Spain, Italy, Poland, Switzerland, Luxembourg and entering the Austrian market

Key points

• Randstad to acquire staffing activities of USG People in Spain, Italy, Poland, Switzerland, Luxembourg and Austria
• Randstad will increase its market position and density of its network
• An investment of € 20 million to add revenue of € 434 million
• The transaction offers a significant opportunity for value creation and will be immediately accretive to Randstad's earnings per share

Today, Randstad announced that it signed an agreement with USG People whereby Randstad will acquire USG People's general staffing activities in Spain, Italy, Poland, Switzerland, Luxembourg and Austria. Within these countries, except for Austria, both businesses have a comparable offering and geographic coverage, which creates a unique strategic opportunity.

The acquired activities of USG People generate revenue of € 434 million (FY 2012), mainly in general staffing and include over 800 corporate employees and 189 outlets. Randstad's revenue in the countries in scope amounts to € 1.2 billion (FY 2012). The consideration to be paid amounts to € 20 million and does not exceed the working capital of the activities in scope. As such, the transaction is considered not material for Randstad's financial position. Randstad will benefit from significant cross-selling opportunities, such as the introduction of inhouse services and sharing of best practices and processes. Our focus will be on capturing profitable growth, client profitability, and optimizing delivery models. Combined with further efficiency improvements and office optimizations, it is expected that these activities will soon start contributing to Randstad's strategic targets. The transaction will be immediately accretive to Randstad's earnings per share.



The transaction is subject to customary closing conditions including regulatory approvals, for example from the European Commission. The transaction has been approved by the boards of both companies. Randstad expects to close the transaction in June 2013. Randstad will finance the transaction by using its existing credit facilities. NautaDutilh is acting as legal advisor to Randstad.