USG People sells its General Staffing activities
USG People sells its General Staffing activities in Spain, Italy, Austria, Switzerland, Poland and Luxembourg
USG People is taking another step in the execution of its strategy with the sale of its General Staffing activities in Spain, Italy, Austria, Switzerland, Poland and Luxembourg. In 2012 the combined revenue of these activities was &euro 434 million. USG People revised its strategy in 2011, shifting its focus on markets where it can offer its stakeholders distinct added value and create sufficient scale to position itself in a leading and profitable way throughout the cycle.
The scale of the respective business units is too limited for them to be able to add value, an aim defined in our strategic objectives, in the market segment in which they operate. The sale of these relatively low-yield activities has an immediate positive effect on the profitability of USG People and supports the strategic financial targets. It also has a positive impact on the company’s financing needs due to reduced demand on working capital.
The sale to Randstad creates positions in the respective countries with effective scale for the markets, making it possible to unlock the potential of these business units better and to safeguard their continuity.
USG People aims to mainly focus its attention on its existing leading positions and to target investments on the expansion of high-yield concepts, such as USG Professionals. Better targeted positioning strengthens the organisation’s focus on these strategic objectives. The sale proceeds of &euro 20 million will be used to further execute the strategy.
The Central Works Council has issued a positive advice on the proposed sale and the transaction will be submitted for European Commission approval. The transaction is subject to the customary conditions precedent.